Correlation Between J W and Jones Lang
Can any of the company-specific risk be diversified away by investing in both J W and Jones Lang 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 J W and Jones Lang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J W Mays and Jones Lang LaSalle, you can compare the effects of market volatilities on J W and Jones Lang 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 J W with a short position of Jones Lang. Check out your portfolio center. Please also check ongoing floating volatility patterns of J W and Jones Lang.
Diversification Opportunities for J W and Jones Lang
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MAYS and Jones is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding J W Mays and Jones Lang LaSalle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Lang LaSalle and J W 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 J W Mays are associated (or correlated) with Jones Lang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jones Lang LaSalle has no effect on the direction of J W i.e., J W and Jones Lang go up and down completely randomly.
Pair Corralation between J W and Jones Lang
Given the investment horizon of 90 days J W Mays is expected to under-perform the Jones Lang. But the stock apears to be less risky and, when comparing its historical volatility, J W Mays is 1.6 times less risky than Jones Lang. The stock trades about -0.42 of its potential returns per unit of risk. The Jones Lang LaSalle is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 25,314 in Jones Lang LaSalle on November 1, 2024 and sell it today you would earn a total of 2,920 from holding Jones Lang LaSalle or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
J W Mays vs. Jones Lang LaSalle
Performance |
| Timeline |
| J W Mays |
| Jones Lang LaSalle |
J W and Jones Lang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J W and Jones Lang
The main advantage of trading using opposite J W and Jones Lang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J W position performs unexpectedly, Jones Lang 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 Jones Lang will offset losses from the drop in Jones Lang's long position.| J W vs. New England Realty | J W vs. Marcus Millichap | J W vs. FirstService Corp | J W vs. Maui Land Pineapple |
| Jones Lang vs. Cushman Wakefield plc | Jones Lang vs. Colliers International Group | Jones Lang vs. CoStar Group | Jones Lang vs. Newmark Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |