Correlation Between Jones Lang and Ke Holdings
Can any of the company-specific risk be diversified away by investing in both Jones Lang and Ke Holdings 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 Jones Lang and Ke Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jones Lang LaSalle and Ke Holdings, you can compare the effects of market volatilities on Jones Lang and Ke Holdings 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 Jones Lang with a short position of Ke Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Lang and Ke Holdings.
Diversification Opportunities for Jones Lang and Ke Holdings
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jones and BEKE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jones Lang LaSalle and Ke Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ke Holdings and Jones Lang 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 Jones Lang LaSalle are associated (or correlated) with Ke Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ke Holdings has no effect on the direction of Jones Lang i.e., Jones Lang and Ke Holdings go up and down completely randomly.
Pair Corralation between Jones Lang and Ke Holdings
Considering the 90-day investment horizon Jones Lang LaSalle is expected to generate 0.87 times more return on investment than Ke Holdings. However, Jones Lang LaSalle is 1.15 times less risky than Ke Holdings. It trades about 0.3 of its potential returns per unit of risk. Ke Holdings is currently generating about -0.04 per unit of risk. If you would invest 24,931 in Jones Lang LaSalle on November 3, 2024 and sell it today you would earn a total of 3,349 from holding Jones Lang LaSalle or generate 13.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jones Lang LaSalle vs. Ke Holdings
Performance |
| Timeline |
| Jones Lang LaSalle |
| Ke Holdings |
Jones Lang and Ke Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jones Lang and Ke Holdings
The main advantage of trading using opposite Jones Lang and Ke Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Lang position performs unexpectedly, Ke Holdings 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 Ke Holdings will offset losses from the drop in Ke Holdings' long position.| Jones Lang vs. Cushman Wakefield plc | Jones Lang vs. Colliers International Group | Jones Lang vs. CoStar Group | Jones Lang vs. Newmark Group |
| Ke Holdings vs. Marcus Millichap | Ke Holdings vs. Digitalbridge Group | Ke Holdings vs. Jones Lang LaSalle | Ke Holdings vs. CBRE Group Class |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |