Correlation Between JLT Mobile and Arion Banki
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By analyzing existing cross correlation between JLT Mobile Computers and Arion banki hf, you can compare the effects of market volatilities on JLT Mobile and Arion Banki 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 JLT Mobile with a short position of Arion Banki. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLT Mobile and Arion Banki.
Diversification Opportunities for JLT Mobile and Arion Banki
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JLT and Arion is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding JLT Mobile Computers and Arion banki hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arion banki hf and JLT Mobile 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 JLT Mobile Computers are associated (or correlated) with Arion Banki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arion banki hf has no effect on the direction of JLT Mobile i.e., JLT Mobile and Arion Banki go up and down completely randomly.
Pair Corralation between JLT Mobile and Arion Banki
Assuming the 90 days trading horizon JLT Mobile Computers is expected to under-perform the Arion Banki. But the stock apears to be less risky and, when comparing its historical volatility, JLT Mobile Computers is 1.02 times less risky than Arion Banki. The stock trades about -0.21 of its potential returns per unit of risk. The Arion banki hf is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Arion banki hf on August 30, 2024 and sell it today you would earn a total of 155.00 from holding Arion banki hf or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
JLT Mobile Computers vs. Arion banki hf
Performance |
| Timeline |
| JLT Mobile Computers |
| Arion banki hf |
JLT Mobile and Arion Banki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLT Mobile and Arion Banki
The main advantage of trading using opposite JLT Mobile and Arion Banki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLT Mobile position performs unexpectedly, Arion Banki 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 Arion Banki will offset losses from the drop in Arion Banki's long position.| JLT Mobile vs. Avensia publ AB | JLT Mobile vs. Diadrom Holding AB | JLT Mobile vs. Kentima Holding publ | JLT Mobile vs. Nepa AB |
| Arion Banki vs. Atrium Ljungberg AB | Arion Banki vs. Bravida Holding AB | Arion Banki vs. Avanza Bank Holding | Arion Banki vs. Autoliv |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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