Correlation Between JLEN Environmental and SupplyMe Capital
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and SupplyMe Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JLEN Environmental and SupplyMe Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLEN Environmental Assets and SupplyMe Capital PLC, you can compare the effects of market volatilities on JLEN Environmental and SupplyMe Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JLEN Environmental with a short position of SupplyMe Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and SupplyMe Capital.
Diversification Opportunities for JLEN Environmental and SupplyMe Capital
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between JLEN and SupplyMe is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital PLC and JLEN Environmental is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JLEN Environmental Assets are associated (or correlated) with SupplyMe Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and SupplyMe Capital go up and down completely randomly.
Pair Corralation between JLEN Environmental and SupplyMe Capital
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to generate 0.15 times more return on investment than SupplyMe Capital. However, JLEN Environmental Assets is 6.78 times less risky than SupplyMe Capital. It trades about -0.05 of its potential returns per unit of risk. SupplyMe Capital PLC is currently generating about -0.02 per unit of risk. If you would invest 10,619 in JLEN Environmental Assets on October 16, 2024 and sell it today you would lose (3,569) from holding JLEN Environmental Assets or give up 33.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
JLEN Environmental Assets vs. SupplyMe Capital PLC
Performance |
| Timeline |
| JLEN Environmental Assets |
| SupplyMe Capital PLC |
JLEN Environmental and SupplyMe Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and SupplyMe Capital
The main advantage of trading using opposite JLEN Environmental and SupplyMe Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, SupplyMe Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SupplyMe Capital will offset losses from the drop in SupplyMe Capital's long position.| JLEN Environmental vs. Ryanair Holdings plc | JLEN Environmental vs. Sealed Air Corp | JLEN Environmental vs. Delta Air Lines | JLEN Environmental vs. Qurate Retail Series |
| SupplyMe Capital vs. Seche Environnement SA | SupplyMe Capital vs. Iron Mountain | SupplyMe Capital vs. JLEN Environmental Assets | SupplyMe Capital vs. Symphony Environmental Technologies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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