Correlation Between BurgerFi International and Jupiter Wellness

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BurgerFi International and Jupiter Wellness 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 BurgerFi International and Jupiter Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BurgerFi International LLC and Jupiter Wellness, you can compare the effects of market volatilities on BurgerFi International and Jupiter Wellness 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 BurgerFi International with a short position of Jupiter Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurgerFi International and Jupiter Wellness.

Diversification Opportunities for BurgerFi International and Jupiter Wellness

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between BurgerFi and Jupiter is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding BurgerFi International LLC and Jupiter Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Wellness and BurgerFi International 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 BurgerFi International LLC are associated (or correlated) with Jupiter Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Wellness has no effect on the direction of BurgerFi International i.e., BurgerFi International and Jupiter Wellness go up and down completely randomly.

Pair Corralation between BurgerFi International and Jupiter Wellness

If you would invest  10.00  in Jupiter Wellness on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Jupiter Wellness or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BurgerFi International LLC  vs.  Jupiter Wellness

 Performance 
       Timeline  
BurgerFi International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Modest
Over the last 90 days BurgerFi International LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal forward indicators, BurgerFi International showed solid returns over the last few months and may actually be approaching a breakup point.
Jupiter Wellness 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Jupiter Wellness has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Jupiter Wellness is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

BurgerFi International and Jupiter Wellness Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BurgerFi International and Jupiter Wellness

The main advantage of trading using opposite BurgerFi International and Jupiter Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurgerFi International position performs unexpectedly, Jupiter Wellness 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 Jupiter Wellness will offset losses from the drop in Jupiter Wellness' long position.
The idea behind BurgerFi International LLC and Jupiter Wellness 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.
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon