Correlation Between Loud Beverage and Jayud Global

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

By analyzing existing cross correlation between Loud Beverage Group and Jayud Global Logistics, you can compare the effects of market volatilities on Loud Beverage and Jayud 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 Loud Beverage with a short position of Jayud Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loud Beverage and Jayud Global.

Diversification Opportunities for Loud Beverage and Jayud Global

0.0

Correlation Coefficient

Loud Beverage  Jayud Global

Pay attention - limited upside

The 3 months correlation between Loud and Jayud is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Loud Beverage Group and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics and Loud Beverage 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 Loud Beverage Group are associated (or correlated) with Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of Loud Beverage i.e., Loud Beverage and Jayud Global go up and down completely randomly.

Pair Corralation between Loud Beverage and Jayud Global

If you would invest  234.00  in Jayud Global Logistics on October 24, 2024 and sell it today you would earn a total of  13.00  from holding Jayud Global Logistics or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Loud Beverage Group  vs.  Jayud Global Logistics

Loud Beverage Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loud Beverage Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Loud Beverage is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Jayud Global Logistics

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Jayud Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Loud Beverage and Jayud Global

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

The idea behind Loud Beverage Group and Jayud Global Logistics 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.