Correlation Between Topbuild Corp and Jowell Global
Can any of the company-specific risk be diversified away by investing in both Topbuild Corp 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 Topbuild Corp and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Topbuild Corp and Jowell Global, you can compare the effects of market volatilities on Topbuild Corp 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 Topbuild Corp with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Topbuild Corp and Jowell Global.
Diversification Opportunities for Topbuild Corp and Jowell Global
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Topbuild and Jowell is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Topbuild Corp and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and Topbuild Corp 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 Topbuild Corp 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 Topbuild Corp i.e., Topbuild Corp and Jowell Global go up and down completely randomly.
Pair Corralation between Topbuild Corp and Jowell Global
Considering the 90-day investment horizon Topbuild Corp is expected to generate 1.31 times less return on investment than Jowell Global. But when comparing it to its historical volatility, Topbuild Corp is 3.31 times less risky than Jowell Global. It trades about 0.39 of its potential returns per unit of risk. Jowell Global is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Jowell Global on October 24, 2024 and sell it today you would earn a total of 39.00 from holding Jowell Global or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Topbuild Corp vs. Jowell Global
Performance |
| Timeline |
| Topbuild Corp |
| Jowell Global |
Topbuild Corp and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Topbuild Corp and Jowell Global
The main advantage of trading using opposite Topbuild Corp and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Topbuild Corp 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.| Topbuild Corp vs. Api Group Corp | Topbuild Corp vs. MYR Group | Topbuild Corp vs. Comfort Systems USA | Topbuild Corp vs. Construction Partners |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |