Correlation Between Vince Holding and JX Luxventure

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

By analyzing existing cross correlation between Vince Holding Corp and JX Luxventure Limited, you can compare the effects of market volatilities on Vince Holding and JX Luxventure 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 Vince Holding with a short position of JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vince Holding and JX Luxventure.

Diversification Opportunities for Vince Holding and JX Luxventure

0.03

Correlation Coefficient

Vince Holding  JX Luxventure

Significant diversification

The 3 months correlation between Vince and JXJT is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Vince Holding Corp and JX Luxventure Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JX Luxventure Limited and Vince Holding 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 Vince Holding Corp are associated (or correlated) with JX Luxventure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JX Luxventure Limited has no effect on the direction of Vince Holding i.e., Vince Holding and JX Luxventure go up and down completely randomly.

Pair Corralation between Vince Holding and JX Luxventure

Given the investment horizon of 90 days Vince Holding Corp is expected to under-perform the JX Luxventure. But the stock apears to be less risky and, when comparing its historical volatility, Vince Holding Corp is 1.26 times less risky than JX Luxventure. The stock trades about -0.28 of its potential returns per unit of risk. The JX Luxventure Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  121.00  in JX Luxventure Limited on February 20, 2024 and sell it today you would earn a total of  13.00  from holding JX Luxventure Limited or generate 10.74% return on investment over 90 days.

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

Vince Holding Corp  vs.  JX Luxventure Limited

Vince Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vince Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in June 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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.

Pair Trading with Vince Holding and JX Luxventure

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

The idea behind Vince Holding Corp and JX Luxventure Limited 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.