Correlation Between Jones Lang and New York

Can any of the company-specific risk be diversified away by investing in both Jones Lang and New York 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 Jones Lang and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jones Lang LaSalle and New York City, you can compare the effects of market volatilities on Jones Lang and New York 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 Jones Lang with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Lang and New York.

Diversification Opportunities for Jones Lang and New York

-0.21

Correlation Coefficient

Jones Lang  New York

Very good diversification

The 3 months correlation between Jones and New is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jones Lang LaSalle and New York City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York City and Jones Lang 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 Jones Lang LaSalle are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York City has no effect on the direction of Jones Lang i.e., Jones Lang and New York go up and down completely randomly.

Pair Corralation between Jones Lang and New York

Considering the 90-day investment horizon Jones Lang LaSalle is expected to generate 0.49 times more return on investment than New York. However, Jones Lang LaSalle is 2.06 times less risky than New York. It trades about 0.06 of its potential returns per unit of risk. New York City is currently generating about -0.01 per unit of risk. If you would invest  16,293  in Jones Lang LaSalle on September 2, 2024 and sell it today you would earn a total of  11,767  from holding Jones Lang LaSalle or generate 72.22% return on investment over 90 days.

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

Jones Lang LaSalle  vs.  New York City

Jones Lang LaSalle

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jones Lang LaSalle are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Jones Lang may actually be approaching a critical reversion point that can send shares even higher in January 2025.

New York City

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days New York City has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Etf's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Pair Trading with Jones Lang and New York

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

The idea behind Jones Lang LaSalle and New York City 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.