Correlation Between Hour Loop and Jowell Global
Can any of the company-specific risk be diversified away by investing in both Hour Loop 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 Hour Loop and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hour Loop and Jowell Global, you can compare the effects of market volatilities on Hour Loop 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 Hour Loop with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hour Loop and Jowell Global.
Diversification Opportunities for Hour Loop and Jowell Global
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hour and Jowell is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hour Loop and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and Hour Loop 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 Hour Loop 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 Hour Loop i.e., Hour Loop and Jowell Global go up and down completely randomly.
Pair Corralation between Hour Loop and Jowell Global
Given the investment horizon of 90 days Hour Loop is expected to generate 6.18 times less return on investment than Jowell Global. But when comparing it to its historical volatility, Hour Loop is 2.55 times less risky than Jowell Global. It trades about 0.08 of its potential returns per unit of risk. Jowell Global is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Jowell Global on August 28, 2024 and sell it today you would earn a total of 218.00 from holding Jowell Global or generate 175.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
Hour Loop vs. Jowell Global
Performance |
| Timeline |
| Hour Loop |
| Jowell Global |
Hour Loop and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hour Loop and Jowell Global
The main advantage of trading using opposite Hour Loop and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hour Loop 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.| Hour Loop vs. Qurate Retail Series | Hour Loop vs. iPower Inc | Hour Loop vs. MOGU Inc | Hour Loop vs. Qurate Retail |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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