Correlation Between Bruush Oral and Jeffs Brands

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

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

Diversification Opportunities for Bruush Oral and Jeffs Brands

-0.17

Correlation Coefficient

Bruush Oral  Jeffs Brands

Good diversification

The 3 months correlation between Bruush and Jeffs is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bruush Oral Care and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands and Bruush Oral 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 Bruush Oral Care are associated (or correlated) with Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of Bruush Oral i.e., Bruush Oral and Jeffs Brands go up and down completely randomly.

Pair Corralation between Bruush Oral and Jeffs Brands

Assuming the 90 days horizon Bruush Oral Care is expected to generate 1.07 times more return on investment than Jeffs Brands. However, Bruush Oral is 1.07 times more volatile than Jeffs Brands. It trades about 0.15 of its potential returns per unit of risk. Jeffs Brands is currently generating about 0.04 per unit of risk. If you would invest  8.19  in Bruush Oral Care on September 15, 2024 and sell it today you would lose (7.64) from holding Bruush Oral Care or give up 93.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	51.92%
Values	Daily Returns

Bruush Oral Care  vs.  Jeffs Brands

Bruush Oral Care

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bruush Oral Care has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical indicators, Bruush Oral is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Jeffs Brands

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jeffs Brands are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental drivers, Jeffs Brands reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bruush Oral and Jeffs Brands

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

The idea behind Bruush Oral Care and Jeffs 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.