Correlation Between JXJT Old and Kontoor Brands
Can any of the company-specific risk be diversified away by investing in both JXJT Old and Kontoor Brands 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 JXJT Old and Kontoor Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JXJT Old and Kontoor Brands, you can compare the effects of market volatilities on JXJT Old and Kontoor Brands 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 JXJT Old with a short position of Kontoor Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of JXJT Old and Kontoor Brands.
Diversification Opportunities for JXJT Old and Kontoor Brands
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JXJT and Kontoor is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding JXJT Old and Kontoor Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontoor Brands and JXJT Old 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 JXJT Old are associated (or correlated) with Kontoor Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontoor Brands has no effect on the direction of JXJT Old i.e., JXJT Old and Kontoor Brands go up and down completely randomly.
Pair Corralation between JXJT Old and Kontoor Brands
Given the investment horizon of 90 days JXJT Old is expected to under-perform the Kontoor Brands. In addition to that, JXJT Old is 3.75 times more volatile than Kontoor Brands. It trades about -0.21 of its total potential returns per unit of risk. Kontoor Brands is currently generating about 0.18 per unit of volatility. If you would invest 8,118 in Kontoor Brands on November 1, 2024 and sell it today you would earn a total of 1,526 from holding Kontoor Brands or generate 18.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 58.33% |
| Values | Daily Returns |
JXJT Old vs. Kontoor Brands
Performance |
| Timeline |
| JXJT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kontoor Brands |
JXJT Old and Kontoor Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JXJT Old and Kontoor Brands
The main advantage of trading using opposite JXJT Old and Kontoor Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JXJT Old position performs unexpectedly, Kontoor Brands 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 Kontoor Brands will offset losses from the drop in Kontoor Brands' long position.| JXJT Old vs. G III Apparel Group | JXJT Old vs. Lakeland Industries | JXJT Old vs. Oxford Industries | JXJT Old vs. Superior Uniform Group |
| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
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.
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