Correlation Between Tobii AB and JLT Mobile

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

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

Diversification Opportunities for Tobii AB and JLT Mobile

0.0

Correlation Coefficient

Tobii AB  JLT Mobile

Pay attention - limited upside

The 3 months correlation between Tobii and JLT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tobii 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 Tobii AB 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 Tobii 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 Tobii AB i.e., Tobii AB and JLT Mobile go up and down completely randomly.

Pair Corralation between Tobii AB and JLT Mobile

If you would invest  200.00  in JLT Mobile Computers on April 20, 2025 and sell it today you would lose (3.00) from holding JLT Mobile Computers or give up 1.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tobii AB  vs.  JLT Mobile Computers

Tobii AB

Risk-Adjusted Performance

Very Weak

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

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 Tobii AB and JLT Mobile

The main advantage of trading using opposite Tobii AB and JLT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tobii AB 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 Tobii 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.