Correlation Between JX Luxventure and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both JX Luxventure and Oxford Industries 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 JX Luxventure and Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JX Luxventure Limited and Oxford Industries, you can compare the effects of market volatilities on JX Luxventure and Oxford Industries 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 JX Luxventure with a short position of Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of JX Luxventure and Oxford Industries.
Diversification Opportunities for JX Luxventure and Oxford Industries
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JXJT and Oxford is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding JX Luxventure Limited and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries and JX Luxventure 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 JX Luxventure Limited are associated (or correlated) with Oxford Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Industries has no effect on the direction of JX Luxventure i.e., JX Luxventure and Oxford Industries go up and down completely randomly.
Pair Corralation between JX Luxventure and Oxford Industries
Given the investment horizon of 90 days JX Luxventure Limited is expected to under-perform the Oxford Industries. In addition to that, JX Luxventure is 2.86 times more volatile than Oxford Industries. It trades about -0.06 of its total potential returns per unit of risk. Oxford Industries is currently generating about -0.02 per unit of volatility. If you would invest 8,375 in Oxford Industries on August 28, 2024 and sell it today you would lose (322.00) from holding Oxford Industries or give up 3.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JX Luxventure Limited vs. Oxford Industries
Performance |
| Timeline |
| JX Luxventure Limited |
| Oxford Industries |
JX Luxventure and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JX Luxventure and Oxford Industries
The main advantage of trading using opposite JX Luxventure and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JX Luxventure position performs unexpectedly, Oxford Industries 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 Oxford Industries will offset losses from the drop in Oxford Industries' long position.| JX Luxventure vs. G III Apparel Group | JX Luxventure vs. Lakeland Industries | JX Luxventure vs. Oxford Industries | JX Luxventure vs. Superior Uniform Group |
| Oxford Industries vs. G III Apparel Group | Oxford Industries vs. Ermenegildo Zegna NV | Oxford Industries vs. Kontoor Brands | Oxford Industries vs. Columbia Sportswear |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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