Correlation Between JLF INVESTMENT and EAT WELL
Can any of the company-specific risk be diversified away by investing in both JLF INVESTMENT and EAT WELL 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 JLF INVESTMENT and EAT WELL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLF INVESTMENT and EAT WELL INVESTMENT, you can compare the effects of market volatilities on JLF INVESTMENT and EAT WELL 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 JLF INVESTMENT with a short position of EAT WELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and EAT WELL.
Diversification Opportunities for JLF INVESTMENT and EAT WELL
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between JLF and EAT is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding JLF INVESTMENT and EAT WELL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAT WELL INVESTMENT and JLF INVESTMENT 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 JLF INVESTMENT are associated (or correlated) with EAT WELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAT WELL INVESTMENT has no effect on the direction of JLF INVESTMENT i.e., JLF INVESTMENT and EAT WELL go up and down completely randomly.
Pair Corralation between JLF INVESTMENT and EAT WELL
If you would invest 11.00 in EAT WELL INVESTMENT on October 20, 2024 and sell it today you would earn a total of 0.00 from holding EAT WELL INVESTMENT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.44% |
| Values | Daily Returns |
JLF INVESTMENT vs. EAT WELL INVESTMENT
Performance |
| Timeline |
| JLF INVESTMENT |
| EAT WELL INVESTMENT |
JLF INVESTMENT and EAT WELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLF INVESTMENT and EAT WELL
The main advantage of trading using opposite JLF INVESTMENT and EAT WELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLF INVESTMENT position performs unexpectedly, EAT WELL 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 EAT WELL will offset losses from the drop in EAT WELL's long position.| JLF INVESTMENT vs. SIEM OFFSHORE NEW | JLF INVESTMENT vs. Algonquin Power Utilities | JLF INVESTMENT vs. Q2M Managementberatung AG | JLF INVESTMENT vs. ScanSource |
| EAT WELL vs. CHINA EDUCATION GROUP | EAT WELL vs. Air Transport Services | EAT WELL vs. ANTA SPORTS PRODUCT | EAT WELL vs. USWE SPORTS AB |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |