Correlation Between Wellell and Jourdeness
Can any of the company-specific risk be diversified away by investing in both Wellell and Jourdeness 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 Wellell and Jourdeness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wellell and Jourdeness Group, you can compare the effects of market volatilities on Wellell and Jourdeness 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 Wellell with a short position of Jourdeness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wellell and Jourdeness.
Diversification Opportunities for Wellell and Jourdeness
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wellell and Jourdeness is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Wellell and Jourdeness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jourdeness Group and Wellell 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 Wellell are associated (or correlated) with Jourdeness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jourdeness Group has no effect on the direction of Wellell i.e., Wellell and Jourdeness go up and down completely randomly.
Pair Corralation between Wellell and Jourdeness
Assuming the 90 days trading horizon Wellell is expected to generate 0.42 times more return on investment than Jourdeness. However, Wellell is 2.36 times less risky than Jourdeness. It trades about -0.24 of its potential returns per unit of risk. Jourdeness Group is currently generating about -0.2 per unit of risk. If you would invest 2,520 in Wellell on September 3, 2024 and sell it today you would lose (80.00) from holding Wellell or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wellell vs. Jourdeness Group
Performance |
| Timeline |
| Wellell |
| Jourdeness Group |
Wellell and Jourdeness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wellell and Jourdeness
The main advantage of trading using opposite Wellell and Jourdeness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wellell position performs unexpectedly, Jourdeness 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 Jourdeness will offset losses from the drop in Jourdeness' long position.| Wellell vs. Sinphar Pharmaceutical Co | Wellell vs. Excelsior Medical Co | Wellell vs. Abnova Taiwan Corp | Wellell vs. Phytohealth Corp |
| Jourdeness vs. Chlitina Holding | Jourdeness vs. All Cosmos Bio Tech | Jourdeness vs. Maxigen Biotech | Jourdeness vs. Grape King Bio |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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