Correlation Between Oxford Industries and JX Luxventure

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

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

Diversification Opportunities for Oxford Industries and JX Luxventure

-0.49

Correlation Coefficient

Oxford Industries  JX Luxventure

Very good diversification

The 3 months correlation between Oxford and JXG is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Industries 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 Oxford Industries 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 Oxford Industries 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 Oxford Industries i.e., Oxford Industries and JX Luxventure go up and down completely randomly.

Pair Corralation between Oxford Industries and JX Luxventure

Considering the 90-day investment horizon Oxford Industries is expected to generate 0.22 times more return on investment than JX Luxventure. However, Oxford Industries is 4.54 times less risky than JX Luxventure. It trades about -0.01 of its potential returns per unit of risk. JX Luxventure Limited is currently generating about -0.01 per unit of risk. If you would invest  10,111  in Oxford Industries on October 8, 2024 and sell it today you would lose (2,090) from holding Oxford Industries or give up 20.67% of portfolio value over 90 days.

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

Oxford Industries  vs.  JX Luxventure Limited

Oxford Industries

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Oxford Industries are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Oxford Industries may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 Oxford Industries and JX Luxventure

The main advantage of trading using opposite Oxford Industries and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Industries 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 Oxford Industries 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.