Correlation Between Vista Outdoor and JX Luxventure
Can any of the company-specific risk be diversified away by investing in both Vista Outdoor and JX Luxventure 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 Vista Outdoor and JX Luxventure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Outdoor and JX Luxventure Limited, you can compare the effects of market volatilities on Vista Outdoor and JX Luxventure 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 Vista Outdoor with a short position of JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Outdoor and JX Luxventure.
Diversification Opportunities for Vista Outdoor and JX Luxventure
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vista and JXJT is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vista Outdoor and JX Luxventure Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JX Luxventure Limited and Vista Outdoor 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 Vista Outdoor are associated (or correlated) with JX Luxventure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JX Luxventure Limited has no effect on the direction of Vista Outdoor i.e., Vista Outdoor and JX Luxventure go up and down completely randomly.
Pair Corralation between Vista Outdoor and JX Luxventure
Given the investment horizon of 90 days Vista Outdoor is expected to generate 0.03 times more return on investment than JX Luxventure. However, Vista Outdoor is 30.68 times less risky than JX Luxventure. It trades about 0.29 of its potential returns per unit of risk. JX Luxventure Limited is currently generating about 0.0 per unit of risk. If you would invest 4,401 in Vista Outdoor on August 31, 2024 and sell it today you would earn a total of 62.00 from holding Vista Outdoor or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vista Outdoor vs. JX Luxventure Limited
Performance |
| Timeline |
| Vista Outdoor |
| JX Luxventure Limited |
Vista Outdoor and JX Luxventure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Outdoor and JX Luxventure
The main advantage of trading using opposite Vista Outdoor and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Outdoor position performs unexpectedly, JX Luxventure 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 JX Luxventure will offset losses from the drop in JX Luxventure's long position.| Vista Outdoor vs. Clarus Corp | Vista Outdoor vs. Johnson Outdoors | Vista Outdoor vs. Escalade Incorporated | Vista Outdoor vs. JAKKS Pacific |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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