Correlation Between JFL Living and HEDGE OFFICE

Can any of the company-specific risk be diversified away by investing in both JFL Living and HEDGE OFFICE 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 JFL Living and HEDGE OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JFL Living Fundo and HEDGE OFFICE INCOME, you can compare the effects of market volatilities on JFL Living and HEDGE OFFICE 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 JFL Living with a short position of HEDGE OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JFL Living and HEDGE OFFICE.

Diversification Opportunities for JFL Living and HEDGE OFFICE

-0.39

Correlation Coefficient

JFL Living  HEDGE OFFICE

Very good diversification

The 3 months correlation between JFL and HEDGE is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding JFL Living Fundo and HEDGE OFFICE INCOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEDGE OFFICE INCOME and JFL Living 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 JFL Living Fundo are associated (or correlated) with HEDGE OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEDGE OFFICE INCOME has no effect on the direction of JFL Living i.e., JFL Living and HEDGE OFFICE go up and down completely randomly.

Pair Corralation between JFL Living and HEDGE OFFICE

If you would invest  4,856  in JFL Living Fundo on October 10, 2024 and sell it today you would earn a total of  2,443  from holding JFL Living Fundo or generate 50.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JFL Living Fundo  vs.  HEDGE OFFICE INCOME

JFL Living Fundo

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JFL Living Fundo are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak essential indicators, JFL Living may actually be approaching a critical reversion point that can send shares even higher in February 2025.

HEDGE OFFICE INCOME

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HEDGE OFFICE INCOME has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, HEDGE OFFICE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JFL Living and HEDGE OFFICE

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

The idea behind JFL Living Fundo and HEDGE OFFICE INCOME 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.