Correlation Between WEBUY GLOBAL and JX Luxventure

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

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

Diversification Opportunities for WEBUY GLOBAL and JX Luxventure

-0.6

Correlation Coefficient

WEBUY GLOBAL  JX Luxventure

Excellent diversification

The 3 months correlation between WEBUY and JXG is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding WEBUY GLOBAL LTD 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 WEBUY GLOBAL 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 WEBUY GLOBAL LTD 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 WEBUY GLOBAL i.e., WEBUY GLOBAL and JX Luxventure go up and down completely randomly.

Pair Corralation between WEBUY GLOBAL and JX Luxventure

Given the investment horizon of 90 days WEBUY GLOBAL LTD is expected to generate 1.24 times more return on investment than JX Luxventure. However, WEBUY GLOBAL is 1.24 times more volatile than JX Luxventure Limited. It trades about 0.04 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  18.00  in WEBUY GLOBAL LTD on October 8, 2024 and sell it today you would earn a total of  0.00  from holding WEBUY GLOBAL LTD or generate 0.0% return on investment over 90 days.

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

WEBUY GLOBAL LTD  vs.  JX Luxventure Limited

WEBUY GLOBAL LTD

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in WEBUY GLOBAL LTD are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, WEBUY GLOBAL showed solid returns over the last few months and may actually be approaching a breakup point.

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 WEBUY GLOBAL and JX Luxventure

The main advantage of trading using opposite WEBUY GLOBAL and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBUY GLOBAL 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 WEBUY GLOBAL LTD 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.