Correlation Between Emerge Commerce and Jowell Global
Can any of the company-specific risk be diversified away by investing in both Emerge Commerce 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 Emerge Commerce and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerge Commerce and Jowell Global, you can compare the effects of market volatilities on Emerge Commerce 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 Emerge Commerce with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerge Commerce and Jowell Global.
Diversification Opportunities for Emerge Commerce and Jowell Global
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerge and Jowell is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Emerge Commerce and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and Emerge Commerce 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 Emerge Commerce 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 Emerge Commerce i.e., Emerge Commerce and Jowell Global go up and down completely randomly.
Pair Corralation between Emerge Commerce and Jowell Global
Assuming the 90 days horizon Emerge Commerce is expected to generate 18.51 times more return on investment than Jowell Global. However, Emerge Commerce is 18.51 times more volatile than Jowell Global. It trades about 0.19 of its potential returns per unit of risk. Jowell Global is currently generating about 0.26 per unit of risk. If you would invest 2.50 in Emerge Commerce on August 24, 2024 and sell it today you would earn a total of 0.01 from holding Emerge Commerce or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Emerge Commerce vs. Jowell Global
Performance |
| Timeline |
| Emerge Commerce |
| Jowell Global |
Emerge Commerce and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerge Commerce and Jowell Global
The main advantage of trading using opposite Emerge Commerce and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerge Commerce 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.| Emerge Commerce vs. Phonex Inc | Emerge Commerce vs. Delivery Hero SE | Emerge Commerce vs. 1StdibsCom | Emerge Commerce vs. Natural Health Trend |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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