Correlation Between Daily Journal and EzFill Holdings

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

By analyzing existing cross correlation between Daily Journal Corp and EzFill Holdings, you can compare the effects of market volatilities on Daily Journal and EzFill Holdings 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 Daily Journal with a short position of EzFill Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daily Journal and EzFill Holdings.

Diversification Opportunities for Daily Journal and EzFill Holdings

-0.44

Correlation Coefficient

Daily Journal  EzFill Holdings

Very good diversification

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

Pair Corralation between Daily Journal and EzFill Holdings

Given the investment horizon of 90 days Daily Journal Corp is expected to under-perform the EzFill Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Daily Journal Corp is 3.18 times less risky than EzFill Holdings. The stock trades about -0.13 of its potential returns per unit of risk. The EzFill Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  257.00  in EzFill Holdings on November 19, 2024 and sell it today you would earn a total of  93.00  from holding EzFill Holdings or generate 36.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.72%
Values	Daily Returns

Daily Journal Corp  vs.  EzFill Holdings

Daily Journal Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daily Journal Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

EzFill Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EzFill Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, EzFill Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Daily Journal and EzFill Holdings

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

The idea behind Daily Journal Corp and EzFill 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.