Correlation Between JC Penney and VOXX International

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Can any of the company-specific risk be diversified away by investing in both JC Penney and VOXX International 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 JC Penney and VOXX International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J C Penney and VOXX International, you can compare the effects of market volatilities on JC Penney and VOXX International 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 JC Penney with a short position of VOXX International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JC Penney and VOXX International.

Diversification Opportunities for JC Penney and VOXX International

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between JCP and VOXX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding J C Penney and VOXX International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VOXX International and JC Penney 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 J C Penney are associated (or correlated) with VOXX International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VOXX International has no effect on the direction of JC Penney i.e., JC Penney and VOXX International go up and down completely randomly.

Pair Corralation between JC Penney and VOXX International

If you would invest  915.00  in VOXX International on December 29, 2023 and sell it today you would lose (89.00) from holding VOXX International or give up 9.73% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

J C Penney  vs.  VOXX International

 Performance 
       Timeline  
J C Penney 

Risk-Adjusted Performance

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Over the last 90 days J C Penney has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, JC Penney is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
VOXX International 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days VOXX International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

JC Penney and VOXX International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JC Penney and VOXX International

The main advantage of trading using opposite JC Penney and VOXX International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JC Penney position performs unexpectedly, VOXX International 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 VOXX International will offset losses from the drop in VOXX International's long position.
The idea behind J C Penney and VOXX International 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.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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