Correlation Between JLT Mobile and FormPipe Software

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

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

Diversification Opportunities for JLT Mobile and FormPipe Software

-0.07

Correlation Coefficient

JLT Mobile  FormPipe Software

Good diversification

The 3 months correlation between JLT and FormPipe is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding JLT Mobile Computers and FormPipe Software AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormPipe Software and JLT Mobile 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 JLT Mobile Computers are associated (or correlated) with FormPipe Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FormPipe Software has no effect on the direction of JLT Mobile i.e., JLT Mobile and FormPipe Software go up and down completely randomly.

Pair Corralation between JLT Mobile and FormPipe Software

Assuming the 90 days trading horizon JLT Mobile is expected to generate 4.04 times less return on investment than FormPipe Software. In addition to that, JLT Mobile is 2.3 times more volatile than FormPipe Software AB. It trades about 0.01 of its total potential returns per unit of risk. FormPipe Software AB is currently generating about 0.09 per unit of volatility. If you would invest  2,624  in FormPipe Software AB on April 21, 2025 and sell it today you would earn a total of  226.00  from holding FormPipe Software AB or generate 8.61% return on investment over 90 days.

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

JLT Mobile Computers  vs.  FormPipe Software AB

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.

FormPipe Software

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FormPipe Software AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, FormPipe Software may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with JLT Mobile and FormPipe Software

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

The idea behind JLT Mobile Computers and FormPipe Software AB 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.