Correlation Between Amazon and Jowell Global
Can any of the company-specific risk be diversified away by investing in both Amazon 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 Amazon and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Jowell Global, you can compare the effects of market volatilities on Amazon 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 Amazon with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Jowell Global.
Diversification Opportunities for Amazon and Jowell Global
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amazon and Jowell is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and Amazon 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 Amazon Inc 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 Amazon i.e., Amazon and Jowell Global go up and down completely randomly.
Pair Corralation between Amazon and Jowell Global
Given the investment horizon of 90 days Amazon Inc is expected to under-perform the Jowell Global. But the stock apears to be less risky and, when comparing its historical volatility, Amazon Inc is 1.73 times less risky than Jowell Global. The stock trades about -0.28 of its potential returns per unit of risk. The Jowell Global is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 290.00 in Jowell Global on December 1, 2024 and sell it today you would lose (8.00) from holding Jowell Global or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon Inc vs. Jowell Global
Performance |
| Timeline |
| Amazon Inc |
| Jowell Global |
Amazon and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Jowell Global
The main advantage of trading using opposite Amazon and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon 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 Amazon Inc 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.| Jowell Global vs. Oriental Culture Holding | Jowell Global vs. Hour Loop | Jowell Global vs. Qurate Retail Series | Jowell Global vs. Emerge Commerce |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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