Correlation Between Jowell Global and Yunji

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

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

Diversification Opportunities for Jowell Global and Yunji

-0.41

Correlation Coefficient

Jowell Global  Yunji

Very good diversification

The 3 months correlation between Jowell and Yunji is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jowell Global and Yunji Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunji 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 Yunji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunji Inc has no effect on the direction of Jowell Global i.e., Jowell Global and Yunji go up and down completely randomly.

Pair Corralation between Jowell Global and Yunji

Given the investment horizon of 90 days Jowell Global is expected to generate 1.63 times more return on investment than Yunji. However, Jowell Global is 1.63 times more volatile than Yunji Inc. It trades about 0.31 of its potential returns per unit of risk. Yunji Inc is currently generating about -0.04 per unit of risk. If you would invest  178.00  in Jowell Global on September 1, 2024 and sell it today you would earn a total of  162.00  from holding Jowell Global or generate 91.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jowell Global  vs.  Yunji Inc

Jowell Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jowell Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile technical and fundamental indicators, Jowell Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Yunji Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yunji Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Yunji may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Jowell Global and Yunji

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

The idea behind Jowell Global and Yunji 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.

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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 Stocks Directory module to find actively traded stocks across global markets.