Correlation Between SUPER HI and JX Luxventure
Can any of the company-specific risk be diversified away by investing in both SUPER HI 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 SUPER HI and JX Luxventure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUPER HI INTERNATIONAL and JX Luxventure Limited, you can compare the effects of market volatilities on SUPER HI 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 SUPER HI with a short position of JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPER HI and JX Luxventure.
Diversification Opportunities for SUPER HI and JX Luxventure
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUPER and JXG is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SUPER HI INTERNATIONAL 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 SUPER HI 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 SUPER HI INTERNATIONAL 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 SUPER HI i.e., SUPER HI and JX Luxventure go up and down completely randomly.
Pair Corralation between SUPER HI and JX Luxventure
Considering the 90-day investment horizon SUPER HI INTERNATIONAL is expected to generate 0.41 times more return on investment than JX Luxventure. However, SUPER HI INTERNATIONAL is 2.41 times less risky than JX Luxventure. It trades about 0.32 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 2,441 in SUPER HI INTERNATIONAL on October 8, 2024 and sell it today you would earn a total of 452.00 from holding SUPER HI INTERNATIONAL or generate 18.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SUPER HI INTERNATIONAL vs. JX Luxventure Limited
Performance |
Timeline |
SUPER HI INTERNATIONAL |
JX Luxventure Limited |
SUPER HI and JX Luxventure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SUPER HI and JX Luxventure
The main advantage of trading using opposite SUPER HI and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPER HI 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.SUPER HI vs. Altair Engineering | SUPER HI vs. 51Talk Online Education | SUPER HI vs. Sun Country Airlines | SUPER HI vs. Alaska Air Group |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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