Correlation Between JX Luxventure and VF
Can any of the company-specific risk be diversified away by investing in both JX Luxventure and VF 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 VF 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 VF Corporation, you can compare the effects of market volatilities on JX Luxventure and VF 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 VF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JX Luxventure and VF.
Diversification Opportunities for JX Luxventure and VF
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JXJT and VF is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding JX Luxventure Limited and VF Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VF Corporation 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 VF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VF Corporation has no effect on the direction of JX Luxventure i.e., JX Luxventure and VF go up and down completely randomly.
Pair Corralation between JX Luxventure and VF
Given the investment horizon of 90 days JX Luxventure Limited is expected to generate 2.61 times more return on investment than VF. However, JX Luxventure is 2.61 times more volatile than VF Corporation. It trades about 0.0 of its potential returns per unit of risk. VF Corporation is currently generating about -0.14 per unit of risk. If you would invest 132.00 in JX Luxventure Limited on August 31, 2024 and sell it today you would lose (7.00) from holding JX Luxventure Limited or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JX Luxventure Limited vs. VF Corp.
Performance |
| Timeline |
| JX Luxventure Limited |
| VF Corporation |
JX Luxventure and VF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JX Luxventure and VF
The main advantage of trading using opposite JX Luxventure and VF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JX Luxventure position performs unexpectedly, VF 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 VF will offset losses from the drop in VF's 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 |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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