Correlation Between J Long and Radcom
Can any of the company-specific risk be diversified away by investing in both J Long and Radcom 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 J Long and Radcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Long Group Limited and Radcom, you can compare the effects of market volatilities on J Long and Radcom 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 J Long with a short position of Radcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Long and Radcom.
Diversification Opportunities for J Long and Radcom
Modest diversification
The 3 months correlation between J Long and Radcom is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding J Long Group Limited and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom and J Long 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 J Long Group Limited are associated (or correlated) with Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of J Long i.e., J Long and Radcom go up and down completely randomly.
Pair Corralation between J Long and Radcom
Allowing for the 90-day total investment horizon J Long Group Limited is expected to generate 0.9 times more return on investment than Radcom. However, J Long Group Limited is 1.11 times less risky than Radcom. It trades about 0.09 of its potential returns per unit of risk. Radcom is currently generating about 0.03 per unit of risk. If you would invest 508.00 in J Long Group Limited on May 26, 2025 and sell it today you would earn a total of 74.00 from holding J Long Group Limited or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Long Group Limited vs. Radcom
Performance |
| Timeline |
| J Long Group |
| Radcom |
J Long and Radcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Long and Radcom
The main advantage of trading using opposite J Long and Radcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Long position performs unexpectedly, Radcom 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 Radcom will offset losses from the drop in Radcom's long position.| J Long vs. Under Armour C | J Long vs. Xcel Brands | J Long vs. Hanesbrands | J Long vs. JX Luxventure Limited |
| Radcom vs. Access Power Co | Radcom vs. PLDT Inc ADR | Radcom vs. BOS Better Online | Radcom vs. Sapiens International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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