Correlation Between Jones Lang and Ab International

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

By analyzing existing cross correlation between Jones Lang Lasalleome and Ab International Value, you can compare the effects of market volatilities on Jones Lang and Ab International 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 Ab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Lang and Ab International.

Diversification Opportunities for Jones Lang and Ab International

-0.14

Correlation Coefficient

Jones Lang  Ab International

Good diversification

The 3 months correlation between Jones and ABIYX is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jones Lang Lasalleome and Ab International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab International Value 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 Lasalleome are associated (or correlated) with Ab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab International Value has no effect on the direction of Jones Lang i.e., Jones Lang and Ab International go up and down completely randomly.

Pair Corralation between Jones Lang and Ab International

Assuming the 90 days trading horizon Jones Lang Lasalleome is expected to under-perform the Ab International. But the fund apears to be less risky and, when comparing its historical volatility, Jones Lang Lasalleome is 4.48 times less risky than Ab International. The fund trades about -0.15 of its potential returns per unit of risk. The Ab International Value is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,366  in Ab International Value on October 4, 2024 and sell it today you would earn a total of  37.00  from holding Ab International Value or generate 2.71% return on investment over 90 days.

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

Jones Lang Lasalleome  vs.  Ab International Value

Jones Lang Lasalleome

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jones Lang Lasalleome has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Jones Lang is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ab International Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ab International Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Jones Lang and Ab International

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

The idea behind Jones Lang Lasalleome and Ab International Value 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.