Correlation Between Jones Lang and J W
Can any of the company-specific risk be diversified away by investing in both Jones Lang and J W 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 J W 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 J W Mays, you can compare the effects of market volatilities on Jones Lang and J W 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 J W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Lang and J W.
Diversification Opportunities for Jones Lang and J W
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jones and MAYS is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jones Lang LaSalle and J W Mays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J W Mays 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 J W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J W Mays has no effect on the direction of Jones Lang i.e., Jones Lang and J W go up and down completely randomly.
Pair Corralation between Jones Lang and J W
Considering the 90-day investment horizon Jones Lang is expected to generate 53.23 times less return on investment than J W. But when comparing it to its historical volatility, Jones Lang LaSalle is 41.14 times less risky than J W. It trades about 0.06 of its potential returns per unit of risk. J W Mays is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,770 in J W Mays on August 27, 2024 and sell it today you would lose (570.00) from holding J W Mays or give up 11.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.06% |
| Values | Daily Returns |
Jones Lang LaSalle vs. J W Mays
Performance |
| Timeline |
| Jones Lang LaSalle |
| J W Mays |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jones Lang and J W Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jones Lang and J W
The main advantage of trading using opposite Jones Lang and J W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Lang position performs unexpectedly, J W 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 J W will offset losses from the drop in J W's long position.| Jones Lang vs. Cushman Wakefield plc | Jones Lang vs. Colliers International Group | Jones Lang vs. CoStar Group | Jones Lang vs. Newmark Group |
| J W vs. Investcorp Credit Management | J W vs. Medalist Diversified Reit | J W vs. Aquagold International | J W vs. Morningstar Unconstrained Allocation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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