Correlation Between LandBridge Company and Jowell Global

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

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

Diversification Opportunities for LandBridge Company and Jowell Global

0.79

Correlation Coefficient

LandBridge Company  Jowell Global

Poor diversification

The 3 months correlation between LandBridge and Jowell is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding LandBridge Company LLC and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and LandBridge Company 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 LandBridge Company LLC are associated (or correlated) with Jowell Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jowell Global has no effect on the direction of LandBridge Company i.e., LandBridge Company and Jowell Global go up and down completely randomly.

Pair Corralation between LandBridge Company and Jowell Global

Allowing for the 90-day total investment horizon LandBridge Company LLC is expected to generate 0.41 times more return on investment than Jowell Global. However, LandBridge Company LLC is 2.41 times less risky than Jowell Global. It trades about 0.26 of its potential returns per unit of risk. Jowell Global is currently generating about 0.03 per unit of risk. If you would invest  2,315  in LandBridge Company LLC on September 3, 2024 and sell it today you would earn a total of  5,285  from holding LandBridge Company LLC or generate 228.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	22.24%
Values	Daily Returns

LandBridge Company LLC  vs.  Jowell Global

LandBridge Company

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in LandBridge Company LLC are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, LandBridge Company sustained solid returns over the last few months and may actually be approaching a breakup point.

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 fragile technical and fundamental indicators, Jowell Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LandBridge Company and Jowell Global

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

The idea behind LandBridge Company LLC and Jowell Global 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.