Correlation Between China Jo and Jowell Global
Can any of the company-specific risk be diversified away by investing in both China Jo 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 China Jo and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Jo Jo Drugstores and Jowell Global, you can compare the effects of market volatilities on China Jo 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 China Jo with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Jo and Jowell Global.
Diversification Opportunities for China Jo and Jowell Global
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Jowell is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Jo Jo Drugstores and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and China Jo 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 China Jo Jo Drugstores 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 China Jo i.e., China Jo and Jowell Global go up and down completely randomly.
Pair Corralation between China Jo and Jowell Global
Given the investment horizon of 90 days China Jo Jo Drugstores is expected to under-perform the Jowell Global. But the stock apears to be less risky and, when comparing its historical volatility, China Jo Jo Drugstores is 1.87 times less risky than Jowell Global. The stock trades about -0.02 of its potential returns per unit of risk. The Jowell Global is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 205.00 in Jowell Global on September 14, 2024 and sell it today you would earn a total of 89.00 from holding Jowell Global or generate 43.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.99% |
| Values | Daily Returns |
China Jo Jo Drugstores vs. Jowell Global
Performance |
| Timeline |
| China Jo Jo |
| Jowell Global |
China Jo and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Jo and Jowell Global
The main advantage of trading using opposite China Jo and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Jo 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.| China Jo vs. SunLink Health Systems | China Jo vs. Leafly Holdings | China Jo vs. Allstar Health Brands | China Jo vs. Walgreens Boots Alliance |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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