Correlation Between Jowell Global and Chewy

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

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

Diversification Opportunities for Jowell Global and Chewy

0.65

Correlation Coefficient

Jowell Global  Chewy

Poor diversification

The 3 months correlation between Jowell and Chewy is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jowell Global and Chewy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chewy Inc 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 Chewy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chewy Inc has no effect on the direction of Jowell Global i.e., Jowell Global and Chewy go up and down completely randomly.

Pair Corralation between Jowell Global and Chewy

Given the investment horizon of 90 days Jowell Global is expected to generate 4.34 times more return on investment than Chewy. However, Jowell Global is 4.34 times more volatile than Chewy Inc. It trades about 0.15 of its potential returns per unit of risk. Chewy Inc is currently generating about 0.02 per unit of risk. If you would invest  136.00  in Jowell Global on September 12, 2024 and sell it today you would earn a total of  144.00  from holding Jowell Global or generate 105.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Jowell Global  vs.  Chewy Inc

Jowell Global

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jowell Global are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Jowell Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Chewy Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Chewy Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Chewy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jowell Global and Chewy

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

The idea behind Jowell Global and Chewy Inc 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.