Correlation Between Superior Uniform and JXJT Old
Can any of the company-specific risk be diversified away by investing in both Superior Uniform and JXJT Old 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 JXJT Old 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 JXJT Old, you can compare the effects of market volatilities on Superior Uniform and JXJT Old 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 JXJT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and JXJT Old.
Diversification Opportunities for Superior Uniform and JXJT Old
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and JXJT is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and JXJT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JXJT Old 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 JXJT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JXJT Old has no effect on the direction of Superior Uniform i.e., Superior Uniform and JXJT Old go up and down completely randomly.
Pair Corralation between Superior Uniform and JXJT Old
Considering the 90-day investment horizon Superior Uniform Group is expected to generate 0.36 times more return on investment than JXJT Old. However, Superior Uniform Group is 2.76 times less risky than JXJT Old. It trades about 0.05 of its potential returns per unit of risk. JXJT Old is currently generating about -0.21 per unit of risk. If you would invest 1,490 in Superior Uniform Group on November 1, 2024 and sell it today you would earn a total of 77.00 from holding Superior Uniform Group or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.33% |
| Values | Daily Returns |
Superior Uniform Group vs. JXJT Old
Performance |
| Timeline |
| Superior Uniform |
| JXJT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Superior Uniform and JXJT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and JXJT Old
The main advantage of trading using opposite Superior Uniform and JXJT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, JXJT Old 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 JXJT Old will offset losses from the drop in JXJT Old's long position.| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. Gildan Activewear |
| JXJT Old vs. G III Apparel Group | JXJT Old vs. Lakeland Industries | JXJT Old vs. Oxford Industries | JXJT Old 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |