Correlation Between Jowell Global and AKA Brands

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

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

Diversification Opportunities for Jowell Global and AKA Brands

0.52

Correlation Coefficient

Jowell Global  AKA Brands

Very weak diversification

The 3 months correlation between Jowell and AKA is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jowell Global and AKA Brands Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKA Brands Holding and Jowell Global 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 Jowell Global are associated (or correlated) with AKA Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKA Brands Holding has no effect on the direction of Jowell Global i.e., Jowell Global and AKA Brands go up and down completely randomly.

Pair Corralation between Jowell Global and AKA Brands

Given the investment horizon of 90 days Jowell Global is expected to under-perform the AKA Brands. But the stock apears to be less risky and, when comparing its historical volatility, Jowell Global is 1.15 times less risky than AKA Brands. The stock trades about -0.08 of its potential returns per unit of risk. The AKA Brands Holding is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  1,961  in AKA Brands Holding on December 26, 2024 and sell it today you would lose (476.00) from holding AKA Brands Holding or give up 24.27% of portfolio value over 90 days.

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

Jowell Global  vs.  AKA Brands Holding

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 fragile performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

AKA Brands Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days AKA Brands Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Jowell Global and AKA Brands

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

The idea behind Jowell Global and AKA Brands Holding 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 Transaction History module to view history of all your transactions and understand their impact on performance.