Correlation Between XLMedia PLC and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and JLEN Environmental 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 XLMedia PLC and JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and JLEN Environmental Assets, you can compare the effects of market volatilities on XLMedia PLC and JLEN Environmental 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 XLMedia PLC with a short position of JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and JLEN Environmental.
Diversification Opportunities for XLMedia PLC and JLEN Environmental
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between XLMedia and JLEN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and JLEN Environmental go up and down completely randomly.
Pair Corralation between XLMedia PLC and JLEN Environmental
Assuming the 90 days trading horizon XLMedia PLC is expected to generate 4.38 times more return on investment than JLEN Environmental. However, XLMedia PLC is 4.38 times more volatile than JLEN Environmental Assets. It trades about 0.0 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.05 per unit of risk. If you would invest 1,538 in XLMedia PLC on October 14, 2024 and sell it today you would lose (603.00) from holding XLMedia PLC or give up 39.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. JLEN Environmental Assets
Performance |
| Timeline |
| XLMedia PLC |
| JLEN Environmental Assets |
XLMedia PLC and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and JLEN Environmental
The main advantage of trading using opposite XLMedia PLC and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| XLMedia PLC vs. Porvair plc | XLMedia PLC vs. Teradata Corp | XLMedia PLC vs. Extra Space Storage | XLMedia PLC vs. Spire Healthcare Group |
| JLEN Environmental vs. Spirent Communications plc | JLEN Environmental vs. XLMedia PLC | JLEN Environmental vs. Atresmedia | JLEN Environmental vs. UNIQA Insurance 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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