Correlation Between Boohoo PLC and Jowell Global
Can any of the company-specific risk be diversified away by investing in both Boohoo 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 Boohoo 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 BoohooCom PLC ADR and Jowell Global, you can compare the effects of market volatilities on Boohoo 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 Boohoo PLC with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boohoo PLC and Jowell Global.
Diversification Opportunities for Boohoo PLC and Jowell Global
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boohoo and Jowell is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BoohooCom PLC ADR and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and Boohoo 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 BoohooCom PLC ADR 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 Boohoo PLC i.e., Boohoo PLC and Jowell Global go up and down completely randomly.
Pair Corralation between Boohoo PLC and Jowell Global
Assuming the 90 days horizon BoohooCom PLC ADR is expected to under-perform the Jowell Global. In addition to that, Boohoo PLC is 1.93 times more volatile than Jowell Global. It trades about -0.22 of its total potential returns per unit of risk. Jowell Global is currently generating about -0.03 per unit of volatility. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BoohooCom PLC ADR vs. Jowell Global
Performance |
| Timeline |
| BoohooCom PLC ADR |
| Jowell Global |
Boohoo PLC and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boohoo PLC and Jowell Global
The main advantage of trading using opposite Boohoo PLC and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boohoo 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.| Boohoo PLC vs. ASOS plc PK | Boohoo PLC vs. Berkeley Group Holdings | Boohoo PLC vs. ZALANDO SE ADR | Boohoo PLC vs. Barratt Developments PLC |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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