Correlation Between Jowell Global and TripAdvisor

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

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

Diversification Opportunities for Jowell Global and TripAdvisor

-0.6

Correlation Coefficient

Jowell Global  TripAdvisor

Excellent diversification

The 3 months correlation between Jowell and TripAdvisor is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jowell Global and TripAdvisor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TripAdvisor 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 TripAdvisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TripAdvisor has no effect on the direction of Jowell Global i.e., Jowell Global and TripAdvisor go up and down completely randomly.

Pair Corralation between Jowell Global and TripAdvisor

Given the investment horizon of 90 days Jowell Global is expected to generate 3.45 times more return on investment than TripAdvisor. However, Jowell Global is 3.45 times more volatile than TripAdvisor. It trades about 0.08 of its potential returns per unit of risk. TripAdvisor is currently generating about -0.04 per unit of risk. If you would invest  177.00  in Jowell Global on September 26, 2024 and sell it today you would earn a total of  83.00  from holding Jowell Global or generate 46.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	97.62%
Values	Daily Returns

Jowell Global  vs.  TripAdvisor

Jowell Global

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jowell Global are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating technical and fundamental indicators, Jowell Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

TripAdvisor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TripAdvisor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, TripAdvisor is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Jowell Global and TripAdvisor

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

The idea behind Jowell Global and TripAdvisor 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.