Correlation Between Gildan Activewear and JX Luxventure
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear 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 Gildan Activewear and JX Luxventure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and JX Luxventure Limited, you can compare the effects of market volatilities on Gildan Activewear 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 Gildan Activewear with a short position of JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and JX Luxventure.
Diversification Opportunities for Gildan Activewear and JX Luxventure
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gildan and JXJT is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear 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 Gildan Activewear 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 Gildan Activewear 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 Gildan Activewear i.e., Gildan Activewear and JX Luxventure go up and down completely randomly.
Pair Corralation between Gildan Activewear and JX Luxventure
Considering the 90-day investment horizon Gildan Activewear is expected to generate 0.13 times more return on investment than JX Luxventure. However, Gildan Activewear is 7.78 times less risky than JX Luxventure. It trades about 0.19 of its potential returns per unit of risk. JX Luxventure Limited is currently generating about -0.03 per unit of risk. If you would invest 4,819 in Gildan Activewear on August 28, 2024 and sell it today you would earn a total of 181.00 from holding Gildan Activewear or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gildan Activewear vs. JX Luxventure Limited
Performance |
| Timeline |
| Gildan Activewear |
| JX Luxventure Limited |
Gildan Activewear and JX Luxventure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gildan Activewear and JX Luxventure
The main advantage of trading using opposite Gildan Activewear and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear 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.| Gildan Activewear vs. Vince Holding Corp | Gildan Activewear vs. Ermenegildo Zegna NV | Gildan Activewear vs. Columbia Sportswear | Gildan Activewear vs. G III Apparel Group |
| JX Luxventure vs. G III Apparel Group | JX Luxventure vs. Lakeland Industries | JX Luxventure vs. Oxford Industries | JX Luxventure vs. Superior Uniform Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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