Correlation Between Jammin Java and Ucommune International

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

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

Diversification Opportunities for Jammin Java and Ucommune International

0.03

Correlation Coefficient

Jammin Java  Ucommune International

Significant diversification

The 3 months correlation between Jammin and Ucommune is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jammin Java Corp and Ucommune International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucommune International and Jammin Java 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 Jammin Java Corp are associated (or correlated) with Ucommune International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ucommune International has no effect on the direction of Jammin Java i.e., Jammin Java and Ucommune International go up and down completely randomly.

Pair Corralation between Jammin Java and Ucommune International

Given the investment horizon of 90 days Jammin Java Corp is expected to generate 96.55 times more return on investment than Ucommune International. However, Jammin Java is 96.55 times more volatile than Ucommune International. It trades about 0.27 of its potential returns per unit of risk. Ucommune International is currently generating about -0.01 per unit of risk. 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 Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Jammin Java Corp  vs.  Ucommune International

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.

Ucommune International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ucommune International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Ucommune International is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Jammin Java and Ucommune International

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

The idea behind Jammin Java Corp and Ucommune International 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.