Correlation Between JLT Mobile and Maven Wireless
Can any of the company-specific risk be diversified away by investing in both JLT Mobile and Maven Wireless 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 Maven Wireless 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 Maven Wireless Sweden, you can compare the effects of market volatilities on JLT Mobile and Maven Wireless 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 Maven Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLT Mobile and Maven Wireless.
Diversification Opportunities for JLT Mobile and Maven Wireless
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JLT and Maven is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding JLT Mobile Computers and Maven Wireless Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maven Wireless Sweden 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 Maven Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maven Wireless Sweden has no effect on the direction of JLT Mobile i.e., JLT Mobile and Maven Wireless go up and down completely randomly.
Pair Corralation between JLT Mobile and Maven Wireless
Assuming the 90 days trading horizon JLT Mobile Computers is expected to under-perform the Maven Wireless. But the stock apears to be less risky and, when comparing its historical volatility, JLT Mobile Computers is 1.28 times less risky than Maven Wireless. The stock trades about -0.24 of its potential returns per unit of risk. The Maven Wireless Sweden is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 1,145 in Maven Wireless Sweden on August 29, 2024 and sell it today you would lose (105.00) from holding Maven Wireless Sweden or give up 9.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLT Mobile Computers vs. Maven Wireless Sweden
Performance |
| Timeline |
| JLT Mobile Computers |
| Maven Wireless Sweden |
JLT Mobile and Maven Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLT Mobile and Maven Wireless
The main advantage of trading using opposite JLT Mobile and Maven Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLT Mobile position performs unexpectedly, Maven Wireless 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 Maven Wireless will offset losses from the drop in Maven Wireless' long position.| JLT Mobile vs. Anoto Group AB | JLT Mobile vs. Avensia publ AB | JLT Mobile vs. Diadrom Holding AB | JLT Mobile vs. Nepa AB |
| Maven Wireless vs. Lidds AB | Maven Wireless vs. Serstech AB | Maven Wireless vs. Transtema Group AB | Maven Wireless vs. Enorama Pharma AB |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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