Correlation Between JX Luxventure and Vince Holding

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

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

Diversification Opportunities for JX Luxventure and Vince Holding

0.33

Correlation Coefficient

JX Luxventure  Vince Holding

Weak diversification

The 3 months correlation between JXG and Vince is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding JX Luxventure Limited and Vince Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vince Holding Corp and JX Luxventure 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 JX Luxventure Limited are associated (or correlated) with Vince Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vince Holding Corp has no effect on the direction of JX Luxventure i.e., JX Luxventure and Vince Holding go up and down completely randomly.

Pair Corralation between JX Luxventure and Vince Holding

Considering the 90-day investment horizon JX Luxventure Limited is expected to generate 2.07 times more return on investment than Vince Holding. However, JX Luxventure is 2.07 times more volatile than Vince Holding Corp. It trades about 0.11 of its potential returns per unit of risk. Vince Holding Corp is currently generating about 0.12 per unit of risk. If you would invest  144.00  in JX Luxventure Limited on October 23, 2024 and sell it today you would earn a total of  133.00  from holding JX Luxventure Limited or generate 92.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

JX Luxventure Limited  vs.  Vince Holding Corp

JX Luxventure Limited

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JX Luxventure Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, JX Luxventure reported solid returns over the last few months and may actually be approaching a breakup point.

Vince Holding Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vince Holding Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Vince Holding exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JX Luxventure and Vince Holding

The main advantage of trading using opposite JX Luxventure and Vince Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JX Luxventure position performs unexpectedly, Vince Holding 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 Vince Holding will offset losses from the drop in Vince Holding's long position.

The idea behind JX Luxventure Limited and Vince Holding Corp 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.