Correlation Between JLF INVESTMENT and IA FINANCIAL

Can any of the company-specific risk be diversified away by investing in both JLF INVESTMENT and IA FINANCIAL 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 JLF INVESTMENT and IA FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JLF INVESTMENT and IA FINANCIAL P, you can compare the effects of market volatilities on JLF INVESTMENT and IA FINANCIAL 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 JLF INVESTMENT with a short position of IA FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and IA FINANCIAL.

Diversification Opportunities for JLF INVESTMENT and IA FINANCIAL

0.0

Correlation Coefficient

JLF INVESTMENT  IA FINANCIAL

Pay attention - limited upside

The 3 months correlation between JLF and 1OD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JLF INVESTMENT and IA FINANCIAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA FINANCIAL P and JLF 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 JLF INVESTMENT are associated (or correlated) with IA FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA FINANCIAL P has no effect on the direction of JLF INVESTMENT i.e., JLF INVESTMENT and IA FINANCIAL go up and down completely randomly.

Pair Corralation between JLF INVESTMENT and IA FINANCIAL

If you would invest  5,453  in IA FINANCIAL P on October 8, 2024 and sell it today you would earn a total of  3,347  from holding IA FINANCIAL P or generate 61.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

JLF INVESTMENT  vs.  IA FINANCIAL P

JLF INVESTMENT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JLF INVESTMENT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, JLF INVESTMENT is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

IA FINANCIAL P

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in IA FINANCIAL P are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, IA FINANCIAL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JLF INVESTMENT and IA FINANCIAL

The main advantage of trading using opposite JLF INVESTMENT and IA FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLF INVESTMENT position performs unexpectedly, IA FINANCIAL 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 IA FINANCIAL will offset losses from the drop in IA FINANCIAL's long position.

The idea behind JLF INVESTMENT and IA FINANCIAL P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.