Correlation Between Jeffs Brands and Jowell Global
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands 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 Jeffs Brands and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Jowell Global, you can compare the effects of market volatilities on Jeffs Brands 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 Jeffs Brands with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Jowell Global.
Diversification Opportunities for Jeffs Brands and Jowell Global
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jeffs and Jowell is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and Jeffs Brands 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 Jeffs Brands 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 Jeffs Brands i.e., Jeffs Brands and Jowell Global go up and down completely randomly.
Pair Corralation between Jeffs Brands and Jowell Global
Given the investment horizon of 90 days Jeffs Brands is expected to under-perform the Jowell Global. But the stock apears to be less risky and, when comparing its historical volatility, Jeffs Brands is 1.0 times less risky than Jowell Global. The stock trades about -0.24 of its potential returns per unit of risk. The Jowell Global is currently generating about -0.03 of returns per unit of risk over similar time horizon. 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 | 98.33% |
Values | Daily Returns |
Jeffs Brands vs. Jowell Global
Performance |
Timeline |
Jeffs Brands |
Jowell Global |
Jeffs Brands and Jowell Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jeffs Brands and Jowell Global
The main advantage of trading using opposite Jeffs Brands and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands 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.Jeffs Brands vs. PDD Holdings | Jeffs Brands vs. Alibaba Group Holding | Jeffs Brands vs. Global E Online | Jeffs Brands vs. Sea |
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Check out your portfolio center.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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