Correlation Between Jeffs Brands and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Alibaba Group 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 Jeffs Brands and Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Alibaba Group Holding, you can compare the effects of market volatilities on Jeffs Brands and Alibaba Group 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 Jeffs Brands with a short position of Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Alibaba Group.
Diversification Opportunities for Jeffs Brands and Alibaba Group
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeffs and Alibaba is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding and Jeffs Brands 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 Jeffs Brands are associated (or correlated) with Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Alibaba Group go up and down completely randomly.
Pair Corralation between Jeffs Brands and Alibaba Group
Given the investment horizon of 90 days Jeffs Brands is expected to generate 58.99 times more return on investment than Alibaba Group. However, Jeffs Brands is 58.99 times more volatile than Alibaba Group Holding. It trades about 0.21 of its potential returns per unit of risk. Alibaba Group Holding is currently generating about -0.15 per unit of risk. If you would invest 35.00 in Jeffs Brands on August 31, 2024 and sell it today you would earn a total of 214.00 from holding Jeffs Brands or generate 611.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Alibaba Group Holding
Performance |
| Timeline |
| Jeffs Brands |
| Alibaba Group Holding |
Jeffs Brands and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Alibaba Group
The main advantage of trading using opposite Jeffs Brands and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| Jeffs Brands vs. MercadoLibre | Jeffs Brands vs. PDD Holdings | Jeffs Brands vs. JD Inc Adr | Jeffs Brands vs. Alibaba Group Holding |
| Alibaba Group vs. Jd Com Inc | Alibaba Group vs. Bravada Intl | Alibaba Group vs. Allegroeu SA | Alibaba Group vs. PDD Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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