Correlation Between Kentima Holding and JLT Mobile
Can any of the company-specific risk be diversified away by investing in both Kentima Holding and JLT Mobile 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 Kentima Holding and JLT Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kentima Holding publ and JLT Mobile Computers, you can compare the effects of market volatilities on Kentima Holding and JLT Mobile 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 Kentima Holding with a short position of JLT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kentima Holding and JLT Mobile.
Diversification Opportunities for Kentima Holding and JLT Mobile
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kentima and JLT is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kentima Holding publ and JLT Mobile Computers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT Mobile Computers and Kentima Holding 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 Kentima Holding publ are associated (or correlated) with JLT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT Mobile Computers has no effect on the direction of Kentima Holding i.e., Kentima Holding and JLT Mobile go up and down completely randomly.
Pair Corralation between Kentima Holding and JLT Mobile
Assuming the 90 days trading horizon Kentima Holding publ is expected to under-perform the JLT Mobile. In addition to that, Kentima Holding is 1.72 times more volatile than JLT Mobile Computers. It trades about -0.15 of its total potential returns per unit of risk. JLT Mobile Computers is currently generating about -0.19 per unit of volatility. If you would invest 314.00 in JLT Mobile Computers on August 25, 2024 and sell it today you would lose (28.00) from holding JLT Mobile Computers or give up 8.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kentima Holding publ vs. JLT Mobile Computers
Performance |
| Timeline |
| Kentima Holding publ |
| JLT Mobile Computers |
Kentima Holding and JLT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kentima Holding and JLT Mobile
The main advantage of trading using opposite Kentima Holding and JLT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kentima Holding position performs unexpectedly, JLT Mobile 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 JLT Mobile will offset losses from the drop in JLT Mobile's long position.| Kentima Holding vs. Novotek AB | Kentima Holding vs. Addnode Group AB | Kentima Holding vs. Softronic AB | Kentima Holding vs. CTT Systems AB |
| JLT Mobile vs. Anoto Group AB | JLT Mobile vs. Avensia publ AB | JLT Mobile vs. Diadrom Holding AB | JLT Mobile vs. Kentima Holding publ |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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