Correlation Between JLEN Environmental and Inspired Plc

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Inspired Plc 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 Inspired Plc 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 Inspired Plc, you can compare the effects of market volatilities on JLEN Environmental and Inspired Plc 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 Inspired Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Inspired Plc.

Diversification Opportunities for JLEN Environmental and Inspired Plc

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between JLEN and Inspired is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Inspired Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspired 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 Inspired Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspired Plc has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Inspired Plc go up and down completely randomly.

Pair Corralation between JLEN Environmental and Inspired Plc

Assuming the 90 days trading horizon JLEN Environmental Assets is expected to generate 0.44 times more return on investment than Inspired Plc. However, JLEN Environmental Assets is 2.26 times less risky than Inspired Plc. It trades about -0.08 of its potential returns per unit of risk. Inspired Plc is currently generating about -0.06 per unit of risk. If you would invest  10,637  in JLEN Environmental Assets on October 24, 2024 and sell it today you would lose (3,747) from holding JLEN Environmental Assets or give up 35.23% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.76%
ValuesDaily Returns

JLEN Environmental Assets  vs.  Inspired Plc

 Performance 
       Timeline  
JLEN Environmental Assets 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
Inspired Plc 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Inspired Plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Inspired Plc unveiled solid returns over the last few months and may actually be approaching a breakup point.

JLEN Environmental and Inspired Plc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JLEN Environmental and Inspired Plc

The main advantage of trading using opposite JLEN Environmental and Inspired Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Inspired Plc 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 Inspired Plc will offset losses from the drop in Inspired Plc's long position.
The idea behind JLEN Environmental Assets and Inspired 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.
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance