Correlation Between Kinnevik Investment and JLT Mobile
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment 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 Kinnevik Investment and JLT Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and JLT Mobile Computers, you can compare the effects of market volatilities on Kinnevik Investment 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 Kinnevik Investment with a short position of JLT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and JLT Mobile.
Diversification Opportunities for Kinnevik Investment and JLT Mobile
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinnevik and JLT is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB 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 Kinnevik Investment 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 Kinnevik Investment AB 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 Kinnevik Investment i.e., Kinnevik Investment and JLT Mobile go up and down completely randomly.
Pair Corralation between Kinnevik Investment and JLT Mobile
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the JLT Mobile. In addition to that, Kinnevik Investment is 1.09 times more volatile than JLT Mobile Computers. It trades about -0.04 of its total potential returns per unit of risk. JLT Mobile Computers is currently generating about -0.05 per unit of volatility. If you would invest 526.00 in JLT Mobile Computers on August 29, 2024 and sell it today you would lose (250.00) from holding JLT Mobile Computers or give up 47.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. JLT Mobile Computers
Performance |
| Timeline |
| Kinnevik Investment |
| JLT Mobile Computers |
Kinnevik Investment and JLT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and JLT Mobile
The main advantage of trading using opposite Kinnevik Investment and JLT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment 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.| Kinnevik Investment vs. Investor AB ser | Kinnevik Investment vs. Investment AB Latour | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. Tele2 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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