Correlation Between Jupiter Wellness and Curaleaf Holdings

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

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

Diversification Opportunities for Jupiter Wellness and Curaleaf Holdings

0.0

Correlation Coefficient

Jupiter Wellness  Curaleaf Holdings

Pay attention - limited upside

The 3 months correlation between Jupiter and Curaleaf is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Wellness and Curaleaf Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curaleaf Holdings and Jupiter Wellness 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 Jupiter Wellness are associated (or correlated) with Curaleaf Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curaleaf Holdings has no effect on the direction of Jupiter Wellness i.e., Jupiter Wellness and Curaleaf Holdings go up and down completely randomly.

Pair Corralation between Jupiter Wellness and Curaleaf Holdings

If you would invest (100.00) in Jupiter Wellness on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Jupiter Wellness or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jupiter Wellness  vs.  Curaleaf Holdings

Jupiter Wellness

Risk-Adjusted Performance

Very Weak

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

Curaleaf Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Curaleaf Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Jupiter Wellness and Curaleaf Holdings

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

The idea behind Jupiter Wellness and Curaleaf 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.