Correlation Between Janone and Xcel Brands

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

By analyzing existing cross correlation between Janone Inc and Xcel Brands, you can compare the effects of market volatilities on Janone and Xcel Brands 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 Janone with a short position of Xcel Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janone and Xcel Brands.

Diversification Opportunities for Janone and Xcel Brands

0.42

Correlation Coefficient

Janone  Xcel Brands

Very weak diversification

The 3 months correlation between Janone and Xcel is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Janone Inc and Xcel Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xcel Brands and Janone 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 Janone Inc are associated (or correlated) with Xcel Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xcel Brands has no effect on the direction of Janone i.e., Janone and Xcel Brands go up and down completely randomly.

Pair Corralation between Janone and Xcel Brands

If you would invest (100.00) in Janone Inc on September 16, 2024 and sell it today you would earn a total of  100.00  from holding Janone Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Janone Inc  vs.  Xcel Brands

Janone Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janone Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Janone is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Xcel Brands

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xcel Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Janone and Xcel Brands

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

The idea behind Janone Inc and Xcel Brands 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.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.