Correlation Between DatChat Series and JX Luxventure

Can any of the company-specific risk be diversified away by investing in both DatChat Series 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 DatChat Series and JX Luxventure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DatChat Series A and JX Luxventure Limited, you can compare the effects of market volatilities on DatChat Series 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 DatChat Series with a short position of JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of DatChat Series and JX Luxventure.

Diversification Opportunities for DatChat Series and JX Luxventure

-0.35

Correlation Coefficient

DatChat Series  JX Luxventure

Very good diversification

The 3 months correlation between DatChat and JXJT is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DatChat Series A 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 DatChat Series 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 DatChat Series A 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 DatChat Series i.e., DatChat Series and JX Luxventure go up and down completely randomly.

Pair Corralation between DatChat Series and JX Luxventure

If you would invest  4.50  in DatChat Series A on October 20, 2024 and sell it today you would earn a total of  45.50  from holding DatChat Series A or generate 1011.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	10.0%
Values	Daily Returns

DatChat Series A  vs.  JX Luxventure Limited

DatChat Series A

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DatChat Series A are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, DatChat Series showed solid returns over the last few months and may actually be approaching a breakup point.

JX Luxventure Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JX Luxventure Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward-looking indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with DatChat Series and JX Luxventure

The main advantage of trading using opposite DatChat Series and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DatChat Series 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.

The idea behind DatChat Series A and JX Luxventure Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.