Correlation Between JX Luxventure and Lakeland Industries

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

By analyzing existing cross correlation between JX Luxventure Limited and Lakeland Industries, you can compare the effects of market volatilities on JX Luxventure and Lakeland Industries 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 Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of JX Luxventure and Lakeland Industries.

Diversification Opportunities for JX Luxventure and Lakeland Industries

0.25

Correlation Coefficient

JX Luxventure  Lakeland Industries

Modest diversification

The 3 months correlation between JXJT and Lakeland is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding JX Luxventure Limited and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Limited are associated (or correlated) with Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of JX Luxventure i.e., JX Luxventure and Lakeland Industries go up and down completely randomly.

Pair Corralation between JX Luxventure and Lakeland Industries

Given the investment horizon of 90 days JX Luxventure is expected to generate 10.76 times less return on investment than Lakeland Industries. In addition to that, JX Luxventure is 3.25 times more volatile than Lakeland Industries. It trades about 0.01 of its total potential returns per unit of risk. Lakeland Industries is currently generating about 0.23 per unit of volatility. If you would invest  1,577  in Lakeland Industries on February 17, 2024 and sell it today you would earn a total of  168.00  from holding Lakeland Industries or generate 10.65% return on investment over 90 days.

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

JX Luxventure Limited  vs.  Lakeland Industries

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. In spite of inconsistent performance in the last few months, the Stock's forward-looking indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Lakeland Industries

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lakeland Industries are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward-looking signals, Lakeland Industries is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with JX Luxventure and Lakeland Industries

The main advantage of trading using opposite JX Luxventure and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JX Luxventure position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' long position.

The idea behind JX Luxventure Limited and Lakeland Industries 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..