Correlation Between JX Luxventure and Waste Management
Can any of the company-specific risk be diversified away by investing in both JX Luxventure and Waste Management 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 Waste Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JX Luxventure and Waste Management, you can compare the effects of market volatilities on JX Luxventure and Waste Management 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 Waste Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of JX Luxventure and Waste Management.
Diversification Opportunities for JX Luxventure and Waste Management
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LLL and Waste is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding JX Luxventure and Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waste Management 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 are associated (or correlated) with Waste Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waste Management has no effect on the direction of JX Luxventure i.e., JX Luxventure and Waste Management go up and down completely randomly.
Pair Corralation between JX Luxventure and Waste Management
Considering the 90-day investment horizon JX Luxventure is expected to under-perform the Waste Management. In addition to that, JX Luxventure is 4.53 times more volatile than Waste Management. It trades about -0.09 of its total potential returns per unit of risk. Waste Management is currently generating about 0.08 per unit of volatility. If you would invest 14,739 in Waste Management on January 25, 2024 and sell it today you would earn a total of 6,304 from holding Waste Management or generate 42.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.16% |
| Values | Daily Returns |
JX Luxventure vs. Waste Management
Performance |
| Timeline |
| JX Luxventure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Waste Management |
JX Luxventure and Waste Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JX Luxventure and Waste Management
The main advantage of trading using opposite JX Luxventure and Waste Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JX Luxventure position performs unexpectedly, Waste Management 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 Waste Management will offset losses from the drop in Waste Management's long position.| JX Luxventure vs. Westrock Coffee | JX Luxventure vs. Calliditas Therapeutics | JX Luxventure vs. Transphorm Technology | JX Luxventure vs. Western Digital |
| Waste Management vs. Waste Connections | Waste Management vs. Clean Harbors | Waste Management vs. Casella Waste Systems | Waste Management vs. Gfl Environmental Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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