Correlation Between JMU and LightInTheBox Holding
Can any of the company-specific risk be diversified away by investing in both JMU and LightInTheBox 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 JMU and LightInTheBox Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JMU Limited and LightInTheBox Holding Co, you can compare the effects of market volatilities on JMU and LightInTheBox 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 JMU with a short position of LightInTheBox Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMU and LightInTheBox Holding.
Diversification Opportunities for JMU and LightInTheBox Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JMU and LightInTheBox is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JMU Limited and LightInTheBox Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightInTheBox Holding and JMU 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 JMU Limited are associated (or correlated) with LightInTheBox Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LightInTheBox Holding has no effect on the direction of JMU i.e., JMU and LightInTheBox Holding go up and down completely randomly.
Pair Corralation between JMU and LightInTheBox Holding
If you would invest 74.00 in LightInTheBox Holding Co on January 19, 2024 and sell it today you would earn a total of 5.00 from holding LightInTheBox Holding Co or generate 6.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
JMU Limited vs. LightInTheBox Holding Co
Performance |
Timeline |
JMU Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LightInTheBox Holding |
JMU and LightInTheBox Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JMU and LightInTheBox Holding
The main advantage of trading using opposite JMU and LightInTheBox Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMU position performs unexpectedly, LightInTheBox 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 LightInTheBox Holding will offset losses from the drop in LightInTheBox Holding's long position.JMU vs. Dominos Pizza | JMU vs. Cleanaway Waste Management | JMU vs. Chipotle Mexican Grill | JMU vs. Direct Line Insurance |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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