Correlation Between JLEN Environmental and Central Securities

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Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and Central Securities 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 Central Securities 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 Central Securities, you can compare the effects of market volatilities on JLEN Environmental and Central Securities 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 Central Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Central Securities.

Diversification Opportunities for JLEN Environmental and Central Securities

-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between JLEN and Central is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Central Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Securities 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 Central Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Securities has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and Central Securities go up and down completely randomly.

Pair Corralation between JLEN Environmental and Central Securities

Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Central Securities. In addition to that, JLEN Environmental is 1.95 times more volatile than Central Securities. It trades about -0.26 of its total potential returns per unit of risk. Central Securities is currently generating about 0.08 per unit of volatility. If you would invest  4,726  in Central Securities on August 19, 2025 and sell it today you would earn a total of  161.00  from holding Central Securities or generate 3.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

JLEN Environmental Assets  vs.  Central Securities

 Performance 
       Timeline  
JLEN Environmental Assets 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days JLEN Environmental Assets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Central Securities 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Central Securities are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Central Securities is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

JLEN Environmental and Central Securities Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JLEN Environmental and Central Securities

The main advantage of trading using opposite JLEN Environmental and Central Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, Central Securities 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 Central Securities will offset losses from the drop in Central Securities' long position.
The idea behind JLEN Environmental Assets and Central Securities 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.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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