Correlation Between Xerox Corp and JC Penney
Can any of the company-specific risk be diversified away by investing in both Xerox Corp and JC Penney 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 Xerox Corp and JC Penney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xerox Corp and J C Penney, you can compare the effects of market volatilities on Xerox Corp and JC Penney 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 Xerox Corp with a short position of JC Penney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xerox Corp and JC Penney.
Diversification Opportunities for Xerox Corp and JC Penney
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xerox and JCP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xerox Corp and J C Penney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J C Penney and Xerox Corp 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 Xerox Corp are associated (or correlated) with JC Penney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J C Penney has no effect on the direction of Xerox Corp i.e., Xerox Corp and JC Penney go up and down completely randomly.
Pair Corralation between Xerox Corp and JC Penney
If you would invest (100.00) in J C Penney on January 26, 2024 and sell it today you would earn a total of 100.00 from holding J C Penney or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Xerox Corp vs. J C Penney
Performance |
Timeline |
Xerox Corp |
J C Penney |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xerox Corp and JC Penney Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xerox Corp and JC Penney
The main advantage of trading using opposite Xerox Corp and JC Penney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xerox Corp position performs unexpectedly, JC Penney 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 JC Penney will offset losses from the drop in JC Penney's long position.Xerox Corp vs. Infosys Ltd ADR | Xerox Corp vs. Cognizant Technology Solutions | Xerox Corp vs. Fidelity National Information | Xerox Corp vs. Jack Henry Associates |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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