Correlation Between AiXin Life and Jammin Java

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

By analyzing existing cross correlation between AiXin Life International and Jammin Java Corp, you can compare the effects of market volatilities on AiXin Life and Jammin Java 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 AiXin Life with a short position of Jammin Java. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiXin Life and Jammin Java.

Diversification Opportunities for AiXin Life and Jammin Java

-0.44

Correlation Coefficient

AiXin Life  Jammin Java

Very good diversification

The 3 months correlation between AiXin and Jammin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding AiXin Life International and Jammin Java Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jammin Java Corp and AiXin Life 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 AiXin Life International are associated (or correlated) with Jammin Java. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jammin Java Corp has no effect on the direction of AiXin Life i.e., AiXin Life and Jammin Java go up and down completely randomly.

Pair Corralation between AiXin Life and Jammin Java

Given the investment horizon of 90 days AiXin Life is expected to generate 4.89 times less return on investment than Jammin Java. But when comparing it to its historical volatility, AiXin Life International is 2.18 times less risky than Jammin Java. It trades about 0.12 of its potential returns per unit of risk. Jammin Java Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Jammin Java Corp on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Jammin Java Corp or generate 0.0% return on investment over 90 days.

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

AiXin Life International  vs.  Jammin Java Corp

AiXin Life International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AiXin Life International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, AiXin Life displayed solid returns over the last few months and may actually be approaching a breakup point.

Jammin Java Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jammin Java Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, Jammin Java displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AiXin Life and Jammin Java

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

The idea behind AiXin Life International and Jammin Java Corp 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.