Correlation Between Havsfrun Investment and JLT Mobile

Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and JLT Mobile 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 Havsfrun Investment and JLT Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Havsfrun Investment AB and JLT Mobile Computers, you can compare the effects of market volatilities on Havsfrun Investment and JLT Mobile 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 Havsfrun Investment with a short position of JLT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and JLT Mobile.

Diversification Opportunities for Havsfrun Investment and JLT Mobile

-0.56

Correlation Coefficient

Havsfrun Investment  JLT Mobile

Excellent diversification

The 3 months correlation between Havsfrun and JLT is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and JLT Mobile Computers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT Mobile Computers and Havsfrun 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 Havsfrun Investment AB are associated (or correlated) with JLT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT Mobile Computers has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and JLT Mobile go up and down completely randomly.

Pair Corralation between Havsfrun Investment and JLT Mobile

Assuming the 90 days trading horizon Havsfrun Investment AB is expected to generate 1.15 times more return on investment than JLT Mobile. However, Havsfrun Investment is 1.15 times more volatile than JLT Mobile Computers. It trades about 0.03 of its potential returns per unit of risk. JLT Mobile Computers is currently generating about -0.16 per unit of risk. If you would invest  1,235  in Havsfrun Investment AB on October 10, 2024 and sell it today you would earn a total of  70.00  from holding Havsfrun Investment AB or generate 5.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Havsfrun Investment AB  vs.  JLT Mobile Computers

Havsfrun Investment

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Havsfrun Investment AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Havsfrun Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

JLT Mobile Computers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JLT Mobile Computers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Havsfrun Investment and JLT Mobile

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

The idea behind Havsfrun Investment AB and JLT Mobile Computers 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.