Correlation Between JLEN Environmental and Franklin Libertyshares

Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Franklin Libertyshares 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 Franklin Libertyshares 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 Franklin Libertyshares ICAV, you can compare the effects of market volatilities on JLEN Environmental and Franklin Libertyshares 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 Franklin Libertyshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Franklin Libertyshares.

Diversification Opportunities for JLEN Environmental and Franklin Libertyshares

0.45

Correlation Coefficient

JLEN Environmental  Franklin Libertyshares

Very weak diversification

The 3 months correlation between JLEN and Franklin is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Franklin Libertyshares ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Libertyshares 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 Franklin Libertyshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Libertyshares has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Franklin Libertyshares go up and down completely randomly.

Pair Corralation between JLEN Environmental and Franklin Libertyshares

Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Franklin Libertyshares. In addition to that, JLEN Environmental is 1.37 times more volatile than Franklin Libertyshares ICAV. It trades about -0.26 of its total potential returns per unit of risk. Franklin Libertyshares ICAV is currently generating about 0.05 per unit of volatility. If you would invest  2,772  in Franklin Libertyshares ICAV on September 12, 2024 and sell it today you would earn a total of  77.00  from holding Franklin Libertyshares ICAV or generate 2.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	93.75%
Values	Daily Returns

JLEN Environmental Assets  vs.  Franklin Libertyshares ICAV

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Franklin Libertyshares

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Libertyshares ICAV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Franklin Libertyshares is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JLEN Environmental and Franklin Libertyshares

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

The idea behind JLEN Environmental Assets and Franklin Libertyshares ICAV 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.