Correlation Between JLT Mobile and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both JLT Mobile and Kinnevik Investment 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 JLT Mobile and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLT Mobile Computers and Kinnevik Investment AB, you can compare the effects of market volatilities on JLT Mobile and Kinnevik Investment 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 Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLT Mobile and Kinnevik Investment.
Diversification Opportunities for JLT Mobile and Kinnevik Investment
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JLT and Kinnevik is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding JLT Mobile Computers and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment 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 Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of JLT Mobile i.e., JLT Mobile and Kinnevik Investment go up and down completely randomly.
Pair Corralation between JLT Mobile and Kinnevik Investment
Assuming the 90 days trading horizon JLT Mobile Computers is expected to generate 0.96 times more return on investment than Kinnevik Investment. However, JLT Mobile Computers is 1.04 times less risky than Kinnevik Investment. It trades about -0.06 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about -0.08 per unit of risk. If you would invest 548.00 in JLT Mobile Computers on August 26, 2024 and sell it today you would lose (262.00) from holding JLT Mobile Computers or give up 47.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLT Mobile Computers vs. Kinnevik Investment AB
Performance |
| Timeline |
| JLT Mobile Computers |
| Kinnevik Investment |
JLT Mobile and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLT Mobile and Kinnevik Investment
The main advantage of trading using opposite JLT Mobile and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLT Mobile position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| JLT Mobile vs. Anoto Group AB | JLT Mobile vs. Avensia publ AB | JLT Mobile vs. Diadrom Holding AB | JLT Mobile vs. Kentima Holding publ |
| Kinnevik Investment vs. Norva24 Group AB | Kinnevik Investment vs. KABE Group AB | Kinnevik Investment vs. IAR Systems Group | Kinnevik Investment vs. Clinical Laserthermia Systems |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges |