Correlation Between IPower and Jowell Global

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

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

Diversification Opportunities for IPower and Jowell Global

0.62

Correlation Coefficient

IPower  Jowell Global

Poor diversification

The 3 months correlation between IPower and Jowell is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding iPower Inc and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and IPower 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 iPower Inc are associated (or correlated) with Jowell Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jowell Global has no effect on the direction of IPower i.e., IPower and Jowell Global go up and down completely randomly.

Pair Corralation between IPower and Jowell Global

Considering the 90-day investment horizon iPower Inc is expected to under-perform the Jowell Global. In addition to that, IPower is 1.25 times more volatile than Jowell Global. It trades about -0.12 of its total potential returns per unit of risk. Jowell Global is currently generating about -0.03 per unit of volatility. If you would invest  266.00  in Jowell Global on December 28, 2024 and sell it today you would lose (38.00) from holding Jowell Global or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.72%
Values	Daily Returns

iPower Inc  vs.  Jowell Global

iPower Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days iPower Inc 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 Etf's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the fund sophisticated investors.

Jowell Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jowell Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with IPower and Jowell Global

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

The idea behind iPower Inc and Jowell Global 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.