Correlation Between J Front and Linamar

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

By analyzing existing cross correlation between J Front Retailing and Linamar, you can compare the effects of market volatilities on J Front and Linamar 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 J Front with a short position of Linamar. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Front and Linamar.

Diversification Opportunities for J Front and Linamar

0.0

Correlation Coefficient

J Front  Linamar

Pay attention - limited upside

The 3 months correlation between JFROF and Linamar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding J Front Retailing and Linamar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linamar and J Front 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 J Front Retailing are associated (or correlated) with Linamar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linamar has no effect on the direction of J Front i.e., J Front and Linamar go up and down completely randomly.

Pair Corralation between J Front and Linamar

If you would invest  5,530  in Linamar on September 9, 2025 and sell it today you would earn a total of  42.00  from holding Linamar or generate 0.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

J Front Retailing  vs.  Linamar

J Front Retailing

Risk-Adjusted Performance

Weakest

Over the last 90 days J Front Retailing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, J Front is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Linamar

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Linamar are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Linamar is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with J Front and Linamar

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

The idea behind J Front Retailing and Linamar 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.