Correlation Between JLF INVESTMENT and WT OFFSHORE

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

By analyzing existing cross correlation between JLF INVESTMENT and WT OFFSHORE, you can compare the effects of market volatilities on JLF INVESTMENT and WT OFFSHORE 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 WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and WT OFFSHORE.

Diversification Opportunities for JLF INVESTMENT and WT OFFSHORE

0.0

Correlation Coefficient

JLF INVESTMENT  WT OFFSHORE

Pay attention - limited upside

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

Pair Corralation between JLF INVESTMENT and WT OFFSHORE

If you would invest  135.00  in WT OFFSHORE on December 19, 2024 and sell it today you would earn a total of  7.00  from holding WT OFFSHORE or generate 5.19% return on investment over 90 days.

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

JLF INVESTMENT  vs.  WT OFFSHORE

JLF INVESTMENT

Risk-Adjusted Performance

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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

WT OFFSHORE

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WT OFFSHORE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, WT OFFSHORE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with JLF INVESTMENT and WT OFFSHORE

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

The idea behind JLF INVESTMENT and WT OFFSHORE 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.