Correlation Between Addnode Group and JLT Mobile

Can any of the company-specific risk be diversified away by investing in both Addnode Group and JLT Mobile 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 Addnode Group and JLT Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Addnode Group AB and JLT Mobile Computers, you can compare the effects of market volatilities on Addnode Group and JLT Mobile 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 Addnode Group with a short position of JLT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addnode Group and JLT Mobile.

Diversification Opportunities for Addnode Group and JLT Mobile

-0.61

Correlation Coefficient

Addnode Group  JLT Mobile

Excellent diversification

The 3 months correlation between Addnode and JLT is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Addnode Group AB and JLT Mobile Computers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT Mobile Computers and Addnode Group 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 Addnode Group AB are associated (or correlated) with JLT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT Mobile Computers has no effect on the direction of Addnode Group i.e., Addnode Group and JLT Mobile go up and down completely randomly.

Pair Corralation between Addnode Group and JLT Mobile

Assuming the 90 days trading horizon Addnode Group AB is expected to generate 0.79 times more return on investment than JLT Mobile. However, Addnode Group AB is 1.27 times less risky than JLT Mobile. It trades about 0.12 of its potential returns per unit of risk. JLT Mobile Computers is currently generating about 0.01 per unit of risk. If you would invest  9,717  in Addnode Group AB on April 22, 2025 and sell it today you would earn a total of  1,943  from holding Addnode Group AB or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Addnode Group AB  vs.  JLT Mobile Computers

Addnode Group AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Addnode Group AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Addnode Group sustained solid returns over the last few months and may actually be approaching a breakup point.

JLT Mobile Computers

Risk-Adjusted Performance

Very Weak

Over the last 90 days JLT Mobile Computers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, JLT Mobile is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Addnode Group and JLT Mobile

The main advantage of trading using opposite Addnode Group and JLT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addnode Group position performs unexpectedly, JLT Mobile 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 JLT Mobile will offset losses from the drop in JLT Mobile's long position.

The idea behind Addnode Group AB and JLT Mobile Computers 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.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.