Correlation Between SUPER HI and JX Luxventure

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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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

SUPER HI INTERNATIONAL  vs.  JX Luxventure Limited

 Performance 
       Timeline  
SUPER HI INTERNATIONAL 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in SUPER HI INTERNATIONAL are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, SUPER HI disclosed solid returns over the last few months and may actually be approaching a breakup point.
JX Luxventure Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.

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.
The idea behind SUPER HI INTERNATIONAL 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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