Correlation Between Seche Environnement and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both Seche Environnement 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 Seche Environnement and JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seche Environnement SA and JLEN Environmental Assets, you can compare the effects of market volatilities on Seche Environnement 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 Seche Environnement with a short position of JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seche Environnement and JLEN Environmental.
Diversification Opportunities for Seche Environnement and JLEN Environmental
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Seche and JLEN is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnement SA 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 Seche Environnement 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 Seche Environnement SA 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 Seche Environnement i.e., Seche Environnement and JLEN Environmental go up and down completely randomly.
Pair Corralation between Seche Environnement and JLEN Environmental
Assuming the 90 days trading horizon Seche Environnement SA is expected to generate 1.1 times more return on investment than JLEN Environmental. However, Seche Environnement is 1.1 times more volatile than JLEN Environmental Assets. It trades about 0.1 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about 0.05 per unit of risk. If you would invest 6,980 in Seche Environnement SA on September 3, 2025 and sell it today you would earn a total of 250.00 from holding Seche Environnement SA or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seche Environnement SA vs. JLEN Environmental Assets
Performance |
| Timeline |
| Seche Environnement |
| JLEN Environmental Assets |
Seche Environnement and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seche Environnement and JLEN Environmental
The main advantage of trading using opposite Seche Environnement and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seche Environnement 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.| Seche Environnement vs. Endeavour Mining Corp | Seche Environnement vs. Lindsell Train Investment | Seche Environnement vs. Kaufman Et Broad | Seche Environnement vs. Pan American Silver |
| JLEN Environmental vs. Naked Wines plc | JLEN Environmental vs. Global Net Lease | JLEN Environmental vs. Gaztransport et Technigaz | JLEN Environmental vs. FC Investment Trust |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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