Correlation Between Jones Lang and Investcorp Credit
Can any of the company-specific risk be diversified away by investing in both Jones Lang and Investcorp Credit 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 Investcorp Credit 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 Investcorp Credit Management, you can compare the effects of market volatilities on Jones Lang and Investcorp Credit 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 Investcorp Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Lang and Investcorp Credit.
Diversification Opportunities for Jones Lang and Investcorp Credit
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jones and Investcorp is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jones Lang LaSalle and Investcorp Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Credit 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 Investcorp Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investcorp Credit has no effect on the direction of Jones Lang i.e., Jones Lang and Investcorp Credit go up and down completely randomly.
Pair Corralation between Jones Lang and Investcorp Credit
Considering the 90-day investment horizon Jones Lang LaSalle is expected to generate 1.09 times more return on investment than Investcorp Credit. However, Jones Lang is 1.09 times more volatile than Investcorp Credit Management. It trades about 0.11 of its potential returns per unit of risk. Investcorp Credit Management is currently generating about 0.01 per unit of risk. If you would invest 16,097 in Jones Lang LaSalle on August 27, 2024 and sell it today you would earn a total of 10,230 from holding Jones Lang LaSalle or generate 63.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jones Lang LaSalle vs. Investcorp Credit Management
Performance |
| Timeline |
| Jones Lang LaSalle |
| Investcorp Credit |
Jones Lang and Investcorp Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jones Lang and Investcorp Credit
The main advantage of trading using opposite Jones Lang and Investcorp Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Lang position performs unexpectedly, Investcorp Credit 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 Investcorp Credit will offset losses from the drop in Investcorp Credit's long position.| Jones Lang vs. Investcorp Credit Management | Jones Lang vs. Medalist Diversified Reit | Jones Lang vs. Aquagold International | Jones Lang vs. Morningstar Unconstrained Allocation |
| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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