Correlation Between ASOS Plc and Jowell Global
Can any of the company-specific risk be diversified away by investing in both ASOS Plc 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 ASOS Plc and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASOS Plc and Jowell Global, you can compare the effects of market volatilities on ASOS Plc 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 ASOS Plc with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASOS Plc and Jowell Global.
Diversification Opportunities for ASOS Plc and Jowell Global
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASOS and Jowell is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding ASOS Plc and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and ASOS Plc 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 ASOS Plc 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 ASOS Plc i.e., ASOS Plc and Jowell Global go up and down completely randomly.
Pair Corralation between ASOS Plc and Jowell Global
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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASOS Plc vs. Jowell Global
Performance |
| Timeline |
| ASOS Plc |
| Jowell Global |
ASOS Plc and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASOS Plc and Jowell Global
The main advantage of trading using opposite ASOS Plc and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASOS Plc 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.| ASOS Plc vs. BoohooCom PLC ADR | ASOS Plc vs. Allegroeu SA | ASOS Plc vs. ZALANDO SE ADR | ASOS Plc vs. AKA Brands Holding |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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