Correlation Between JLEN Environmental and Biotech Growth
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Biotech Growth 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 JLEN Environmental and Biotech Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLEN Environmental Assets and The Biotech Growth, you can compare the effects of market volatilities on JLEN Environmental and Biotech Growth 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 JLEN Environmental with a short position of Biotech Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Biotech Growth.
Diversification Opportunities for JLEN Environmental and Biotech Growth
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JLEN and Biotech is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and The Biotech Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotech Growth and JLEN Environmental 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 JLEN Environmental Assets are associated (or correlated) with Biotech Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotech Growth has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Biotech Growth go up and down completely randomly.
Pair Corralation between JLEN Environmental and Biotech Growth
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Biotech Growth. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.25 times less risky than Biotech Growth. The stock trades about -0.08 of its potential returns per unit of risk. The The Biotech Growth is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 94,800 in The Biotech Growth on September 8, 2025 and sell it today you would earn a total of 28,200 from holding The Biotech Growth or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. The Biotech Growth
Performance |
| Timeline |
| JLEN Environmental Assets |
| Biotech Growth |
JLEN Environmental and Biotech Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Biotech Growth
The main advantage of trading using opposite JLEN Environmental and Biotech Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Biotech Growth 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 Biotech Growth will offset losses from the drop in Biotech Growth's long position.| JLEN Environmental vs. Toyota Motor Corp | JLEN Environmental vs. Air Products Chemicals | JLEN Environmental vs. Ford Motor | JLEN Environmental vs. Synchrony Financial |
| Biotech Growth vs. Cornish Metals | Biotech Growth vs. AfriTin Mining | Biotech Growth vs. Temple Bar Investment | Biotech Growth vs. Tamburi Investment Partners |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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