Correlation Between Superior Uniform and J Long
Can any of the company-specific risk be diversified away by investing in both Superior Uniform and J Long 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 Superior Uniform and J Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and J Long Group Limited, you can compare the effects of market volatilities on Superior Uniform and J Long 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 Superior Uniform with a short position of J Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and J Long.
Diversification Opportunities for Superior Uniform and J Long
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and J Long is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and J Long Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Long Group and Superior Uniform 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 Superior Uniform Group are associated (or correlated) with J Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Long Group has no effect on the direction of Superior Uniform i.e., Superior Uniform and J Long go up and down completely randomly.
Pair Corralation between Superior Uniform and J Long
Considering the 90-day investment horizon Superior Uniform Group is expected to generate 0.17 times more return on investment than J Long. However, Superior Uniform Group is 5.73 times less risky than J Long. It trades about -0.1 of its potential returns per unit of risk. J Long Group Limited is currently generating about -0.21 per unit of risk. If you would invest 1,724 in Superior Uniform Group on September 12, 2024 and sell it today you would lose (56.00) from holding Superior Uniform Group or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Uniform Group vs. J Long Group Limited
Performance |
| Timeline |
| Superior Uniform |
| J Long Group |
Superior Uniform and J Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and J Long
The main advantage of trading using opposite Superior Uniform and J Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, J Long 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 J Long will offset losses from the drop in J Long's long position.| Superior Uniform vs. J Long Group Limited | Superior Uniform vs. Under Armour C | Superior Uniform vs. Vince Holding Corp | Superior Uniform vs. Figs Inc |
| J Long vs. Ermenegildo Zegna NV | J Long vs. Columbia Sportswear | J Long vs. Gildan Activewear | J Long 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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