Correlation Between DXC Technology and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both DXC Technology and JLEN Environmental 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 DXC Technology and JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and JLEN Environmental Assets, you can compare the effects of market volatilities on DXC Technology and JLEN Environmental 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 DXC Technology with a short position of JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and JLEN Environmental.
Diversification Opportunities for DXC Technology and JLEN Environmental
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DXC and JLEN is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets and DXC Technology 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 DXC Technology Co are associated (or correlated) with JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of DXC Technology i.e., DXC Technology and JLEN Environmental go up and down completely randomly.
Pair Corralation between DXC Technology and JLEN Environmental
Assuming the 90 days trading horizon DXC Technology Co is expected to generate 1.73 times more return on investment than JLEN Environmental. However, DXC Technology is 1.73 times more volatile than JLEN Environmental Assets. It trades about -0.06 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.21 per unit of risk. If you would invest 1,368 in DXC Technology Co on August 21, 2025 and sell it today you would lose (146.00) from holding DXC Technology Co or give up 10.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
DXC Technology Co vs. JLEN Environmental Assets
Performance |
| Timeline |
| DXC Technology |
| JLEN Environmental Assets |
DXC Technology and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and JLEN Environmental
The main advantage of trading using opposite DXC Technology and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| DXC Technology vs. Berkshire Hathaway | DXC Technology vs. Samsung Electronics Co | DXC Technology vs. Samsung Electronics Co | DXC Technology vs. Samsung Electronics Co |
| JLEN Environmental vs. Toyota Motor Corp | JLEN Environmental vs. SoftBank Group Corp | JLEN Environmental vs. Air Products Chemicals | JLEN Environmental vs. Synchrony Financial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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