Correlation Between J Long and Vince Holding
Can any of the company-specific risk be diversified away by investing in both J Long and Vince Holding 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 Long and Vince Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Long Group Limited and Vince Holding Corp, you can compare the effects of market volatilities on J Long and Vince Holding 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 Long with a short position of Vince Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Long and Vince Holding.
Diversification Opportunities for J Long and Vince Holding
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between J Long and Vince is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding J Long Group Limited and Vince Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vince Holding Corp and J Long 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 Long Group Limited are associated (or correlated) with Vince Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vince Holding Corp has no effect on the direction of J Long i.e., J Long and Vince Holding go up and down completely randomly.
Pair Corralation between J Long and Vince Holding
Allowing for the 90-day total investment horizon J Long Group Limited is expected to generate 3.23 times more return on investment than Vince Holding. However, J Long is 3.23 times more volatile than Vince Holding Corp. It trades about -0.09 of its potential returns per unit of risk. Vince Holding Corp is currently generating about -0.36 per unit of risk. If you would invest 40.00 in J Long Group Limited on September 4, 2024 and sell it today you would lose (8.00) from holding J Long Group Limited or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Long Group Limited vs. Vince Holding Corp
Performance |
| Timeline |
| J Long Group |
| Vince Holding Corp |
J Long and Vince Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Long and Vince Holding
The main advantage of trading using opposite J Long and Vince Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Long position performs unexpectedly, Vince Holding 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 Vince Holding will offset losses from the drop in Vince Holding's long position.| J Long vs. Advanced Micro Devices | J Long vs. United States Steel | J Long vs. Ironveld Plc | J Long vs. Globalfoundries |
| Vince Holding vs. Ermenegildo Zegna NV | Vince Holding vs. Columbia Sportswear | Vince Holding vs. Gildan Activewear | Vince Holding vs. G III Apparel 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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