Correlation Between Full House and JX Luxventure

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

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

Diversification Opportunities for Full House and JX Luxventure

0.71

Correlation Coefficient

Full House  JX Luxventure

Poor diversification

The 3 months correlation between Full and JXG is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Full House Resorts 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 Full House 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 Full House Resorts 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 Full House i.e., Full House and JX Luxventure go up and down completely randomly.

Pair Corralation between Full House and JX Luxventure

Considering the 90-day investment horizon Full House Resorts is expected to generate 0.5 times more return on investment than JX Luxventure. However, Full House Resorts is 2.0 times less risky than JX Luxventure. It trades about 0.12 of its potential returns per unit of risk. JX Luxventure Limited is currently generating about -0.02 per unit of risk. If you would invest  447.00  in Full House Resorts on October 8, 2024 and sell it today you would earn a total of  34.00  from holding Full House Resorts or generate 7.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

Full House Resorts  vs.  JX Luxventure Limited

Full House Resorts

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Full House Resorts has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Full House is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

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. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Full House and JX Luxventure

The main advantage of trading using opposite Full House and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full House 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 Full House Resorts 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.