Correlation Between Dogness International and JX Luxventure
Can any of the company-specific risk be diversified away by investing in both Dogness International and JX Luxventure 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 Dogness International and JX Luxventure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogness International Corp and JX Luxventure Limited, you can compare the effects of market volatilities on Dogness International and JX Luxventure 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 Dogness International with a short position of JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogness International and JX Luxventure.
Diversification Opportunities for Dogness International and JX Luxventure
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dogness and JXJT is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Dogness International Corp and JX Luxventure Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JX Luxventure Limited and Dogness International 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 Dogness International Corp are associated (or correlated) with JX Luxventure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JX Luxventure Limited has no effect on the direction of Dogness International i.e., Dogness International and JX Luxventure go up and down completely randomly.
Pair Corralation between Dogness International and JX Luxventure
Given the investment horizon of 90 days Dogness International Corp is expected to generate 0.98 times more return on investment than JX Luxventure. However, Dogness International Corp is 1.03 times less risky than JX Luxventure. It trades about 0.01 of its potential returns per unit of risk. JX Luxventure Limited is currently generating about -0.08 per unit of risk. If you would invest 4,682 in Dogness International Corp on August 27, 2024 and sell it today you would lose (170.00) from holding Dogness International Corp or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dogness International Corp vs. JX Luxventure Limited
Performance |
| Timeline |
| Dogness International |
| JX Luxventure Limited |
Dogness International and JX Luxventure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogness International and JX Luxventure
The main advantage of trading using opposite Dogness International and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogness International position performs unexpectedly, JX Luxventure 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 JX Luxventure will offset losses from the drop in JX Luxventure's long position.| Dogness International vs. VF Corporation | Dogness International vs. Levi Strauss Co | Dogness International vs. Under Armour A | Dogness International vs. Oxford Industries |
| JX Luxventure vs. VF Corporation | JX Luxventure vs. Levi Strauss Co | JX Luxventure vs. Under Armour A | JX Luxventure vs. Oxford Industries |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |