Correlation Between Elixinol Global and Juva Life
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Juva Life 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 Elixinol Global and Juva Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Juva Life, you can compare the effects of market volatilities on Elixinol Global and Juva Life 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 Elixinol Global with a short position of Juva Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Juva Life.
Diversification Opportunities for Elixinol Global and Juva Life
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elixinol and Juva is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Juva Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juva Life and Elixinol Global 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 Elixinol Global are associated (or correlated) with Juva Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juva Life has no effect on the direction of Elixinol Global i.e., Elixinol Global and Juva Life go up and down completely randomly.
Pair Corralation between Elixinol Global and Juva Life
Assuming the 90 days horizon Elixinol Global is expected to generate 2.05 times less return on investment than Juva Life. But when comparing it to its historical volatility, Elixinol Global is 1.7 times less risky than Juva Life. It trades about 0.11 of its potential returns per unit of risk. Juva Life is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8.80 in Juva Life on September 13, 2024 and sell it today you would lose (8.79) from holding Juva Life or give up 99.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Elixinol Global vs. Juva Life
Performance |
| Timeline |
| Elixinol Global |
| Juva Life |
Elixinol Global and Juva Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Juva Life
The main advantage of trading using opposite Elixinol Global and Juva Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Juva Life 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 Juva Life will offset losses from the drop in Juva Life's long position.| Elixinol Global vs. Pharmadrug | Elixinol Global vs. Livewire Ergogenics | Elixinol Global vs. Agra Ventures | Elixinol Global vs. BellRock Brands |
| Juva Life vs. 4Front Ventures Corp | Juva Life vs. Khiron Life Sciences | Juva Life vs. BellRock Brands | Juva Life vs. Elixinol Global |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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