Correlation Between J B and Lanakam SA
Can any of the company-specific risk be diversified away by investing in both J B and Lanakam SA 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 B and Lanakam SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J B Ladenis and Lanakam SA, you can compare the effects of market volatilities on J B and Lanakam SA 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 B with a short position of Lanakam SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of J B and Lanakam SA.
Diversification Opportunities for J B and Lanakam SA
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between MIN and Lanakam is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding J B Ladenis and Lanakam SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanakam SA and J B 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 B Ladenis are associated (or correlated) with Lanakam SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanakam SA has no effect on the direction of J B i.e., J B and Lanakam SA go up and down completely randomly.
Pair Corralation between J B and Lanakam SA
Assuming the 90 days trading horizon J B Ladenis is expected to generate 0.63 times more return on investment than Lanakam SA. However, J B Ladenis is 1.59 times less risky than Lanakam SA. It trades about 0.01 of its potential returns per unit of risk. Lanakam SA is currently generating about -0.71 per unit of risk. If you would invest 52.00 in J B Ladenis on November 9, 2024 and sell it today you would earn a total of 0.00 from holding J B Ladenis or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 14.29% |
| Values | Daily Returns |
J B Ladenis vs. Lanakam SA
Performance |
| Timeline |
| J B Ladenis |
| Lanakam SA |
Risk-Adjusted Performance
Solid
Weak | Strong |
J B and Lanakam SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J B and Lanakam SA
The main advantage of trading using opposite J B and Lanakam SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J B position performs unexpectedly, Lanakam SA 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 Lanakam SA will offset losses from the drop in Lanakam SA's long position.| J B vs. Hellenic Telecommunications Organization | J B vs. Marfin Investment Group | J B vs. Foodlink AE | J B vs. Intertech SA Inter |
| Lanakam SA vs. General Commercial Industrial | Lanakam SA vs. Profile Systems Software | Lanakam SA vs. Hellenic Telecommunications Organization | Lanakam SA vs. Eurobank Ergasias Services |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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