Correlation Between Ebet and JX Luxventure

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

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

Diversification Opportunities for Ebet and JX Luxventure

0.0

Correlation Coefficient

Ebet  JX Luxventure

Pay attention - limited upside

The 3 months correlation between Ebet and JXG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ebet Inc 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 Ebet 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 Ebet Inc 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 Ebet i.e., Ebet and JX Luxventure go up and down completely randomly.

Pair Corralation between Ebet and JX Luxventure

If you would invest  83.00  in JX Luxventure Limited on December 18, 2024 and sell it today you would earn a total of  140.00  from holding JX Luxventure Limited or generate 168.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ebet Inc  vs.  JX Luxventure Limited

Ebet Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ebet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Ebet is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

JX Luxventure Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JX Luxventure Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, JX Luxventure reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ebet and JX Luxventure

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

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.