Correlation Between J Long and Canada Goose

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

By analyzing existing cross correlation between J Long Group Limited and Canada Goose Holdings, you can compare the effects of market volatilities on J Long and Canada Goose 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 J Long with a short position of Canada Goose. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Long and Canada Goose.

Diversification Opportunities for J Long and Canada Goose

0.13

Correlation Coefficient

J Long  Canada Goose

Average diversification

The 3 months correlation between J Long and Canada is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding J Long Group Limited and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings and J Long 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 J Long Group Limited are associated (or correlated) with Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of J Long i.e., J Long and Canada Goose go up and down completely randomly.

Pair Corralation between J Long and Canada Goose

Allowing for the 90-day total investment horizon J Long Group Limited is expected to under-perform the Canada Goose. In addition to that, J Long is 3.74 times more volatile than Canada Goose Holdings. It trades about -0.05 of its total potential returns per unit of risk. Canada Goose Holdings is currently generating about -0.03 per unit of volatility. If you would invest  1,558  in Canada Goose Holdings on September 12, 2024 and sell it today you would lose (559.50) from holding Canada Goose Holdings or give up 35.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	67.67%
Values	Daily Returns

J Long Group Limited  vs.  Canada Goose Holdings

J Long Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in J Long Group Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, J Long may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Canada Goose Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canada Goose Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Canada Goose is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with J Long and Canada Goose

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

The idea behind J Long Group Limited and Canada Goose Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.