Correlation Between Jadeart and Luk Fook
Can any of the company-specific risk be diversified away by investing in both Jadeart and Luk Fook 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 Jadeart and Luk Fook into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jadeart Group and Luk Fook Holdings, you can compare the effects of market volatilities on Jadeart and Luk Fook 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 Jadeart with a short position of Luk Fook. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jadeart and Luk Fook.
Diversification Opportunities for Jadeart and Luk Fook
Very weak diversification
The 3 months correlation between Jadeart and Luk is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jadeart Group and Luk Fook Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luk Fook Holdings and Jadeart 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 Jadeart Group are associated (or correlated) with Luk Fook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luk Fook Holdings has no effect on the direction of Jadeart i.e., Jadeart and Luk Fook go up and down completely randomly.
Pair Corralation between Jadeart and Luk Fook
Given the investment horizon of 90 days Jadeart Group is expected to under-perform the Luk Fook. In addition to that, Jadeart is 5.51 times more volatile than Luk Fook Holdings. It trades about -0.13 of its total potential returns per unit of risk. Luk Fook Holdings is currently generating about -0.32 per unit of volatility. If you would invest 259.00 in Luk Fook Holdings on January 26, 2024 and sell it today you would lose (37.00) from holding Luk Fook Holdings or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jadeart Group vs. Luk Fook Holdings
Performance |
| Timeline |
| Jadeart Group |
| Luk Fook Holdings |
Jadeart and Luk Fook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jadeart and Luk Fook
The main advantage of trading using opposite Jadeart and Luk Fook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jadeart position performs unexpectedly, Luk Fook 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 Luk Fook will offset losses from the drop in Luk Fook's long position.| Jadeart vs. Rivian Automotive | Jadeart vs. Nio Class A | Jadeart vs. Xpeng Inc | Jadeart vs. Mullen Automotive |
| Luk Fook vs. Kering SA | Luk Fook vs. Compagnie Financiere Richemont | Luk Fook vs. Burberry Group Plc | Luk Fook vs. Prada Spa PK |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |