Correlation Between JLEN Environmental and Athelney Trust

Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Athelney Trust 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 JLEN Environmental and Athelney Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JLEN Environmental Assets and Athelney Trust plc, you can compare the effects of market volatilities on JLEN Environmental and Athelney Trust 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 JLEN Environmental with a short position of Athelney Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Athelney Trust.

Diversification Opportunities for JLEN Environmental and Athelney Trust

-0.69

Correlation Coefficient

JLEN Environmental  Athelney Trust

Excellent diversification

The 3 months correlation between JLEN and Athelney is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Athelney Trust plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athelney Trust plc and JLEN Environmental 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 JLEN Environmental Assets are associated (or correlated) with Athelney Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athelney Trust plc has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Athelney Trust go up and down completely randomly.

Pair Corralation between JLEN Environmental and Athelney Trust

Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Athelney Trust. In addition to that, JLEN Environmental is 1.55 times more volatile than Athelney Trust plc. It trades about -0.07 of its total potential returns per unit of risk. Athelney Trust plc is currently generating about 0.23 per unit of volatility. If you would invest  17,500  in Athelney Trust plc on October 12, 2024 and sell it today you would earn a total of  1,000.00  from holding Athelney Trust plc or generate 5.71% return on investment over 90 days.

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

JLEN Environmental Assets  vs.  Athelney Trust plc

JLEN Environmental Assets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JLEN Environmental Assets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady 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.

Athelney Trust plc

Risk-Adjusted Performance

13 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Athelney Trust plc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Athelney Trust may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with JLEN Environmental and Athelney Trust

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

The idea behind JLEN Environmental Assets and Athelney Trust plc 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.