Correlation Between Jones Lang and Vonovia SE
Can any of the company-specific risk be diversified away by investing in both Jones Lang and Vonovia SE 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 Vonovia SE 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 Vonovia SE ADR, you can compare the effects of market volatilities on Jones Lang and Vonovia SE 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 Vonovia SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Lang and Vonovia SE.
Diversification Opportunities for Jones Lang and Vonovia SE
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jones and Vonovia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jones Lang LaSalle and Vonovia SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vonovia SE ADR 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 Vonovia SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vonovia SE ADR has no effect on the direction of Jones Lang i.e., Jones Lang and Vonovia SE go up and down completely randomly.
Pair Corralation between Jones Lang and Vonovia SE
Considering the 90-day investment horizon Jones Lang LaSalle is expected to generate 1.01 times more return on investment than Vonovia SE. However, Jones Lang is 1.01 times more volatile than Vonovia SE ADR. It trades about 0.11 of its potential returns per unit of risk. Vonovia SE ADR is currently generating about 0.04 per unit of risk. If you would invest 16,767 in Jones Lang LaSalle on September 4, 2024 and sell it today you would earn a total of 11,048 from holding Jones Lang LaSalle or generate 65.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Jones Lang LaSalle vs. Vonovia SE ADR
Performance |
| Timeline |
| Jones Lang LaSalle |
| Vonovia SE ADR |
Jones Lang and Vonovia SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jones Lang and Vonovia SE
The main advantage of trading using opposite Jones Lang and Vonovia SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Lang position performs unexpectedly, Vonovia SE 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 Vonovia SE will offset losses from the drop in Vonovia SE'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 |
| Vonovia SE vs. CBRE Group Class | Vonovia SE vs. CoStar Group | Vonovia SE vs. Cellnex Telecom SA | Vonovia SE vs. Ke Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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