Correlation Between Jeffs Brands and Emerge Commerce
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Emerge Commerce 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 Emerge Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Emerge Commerce, you can compare the effects of market volatilities on Jeffs Brands and Emerge Commerce 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 Emerge Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Emerge Commerce.
Diversification Opportunities for Jeffs Brands and Emerge Commerce
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jeffs and Emerge is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Emerge Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerge Commerce 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 Emerge Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerge Commerce has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Emerge Commerce go up and down completely randomly.
Pair Corralation between Jeffs Brands and Emerge Commerce
Given the investment horizon of 90 days Jeffs Brands is expected to under-perform the Emerge Commerce. But the stock apears to be less risky and, when comparing its historical volatility, Jeffs Brands is 16.75 times less risky than Emerge Commerce. The stock trades about -0.06 of its potential returns per unit of risk. The Emerge Commerce is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2.51 in Emerge Commerce on October 24, 2024 and sell it today you would earn a total of 7.49 from holding Emerge Commerce or generate 298.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Emerge Commerce
Performance |
| Timeline |
| Jeffs Brands |
| Emerge Commerce |
Jeffs Brands and Emerge Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Emerge Commerce
The main advantage of trading using opposite Jeffs Brands and Emerge Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Emerge Commerce 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 Emerge Commerce will offset losses from the drop in Emerge Commerce's long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Emerge Commerce vs. Phonex Inc | Emerge Commerce vs. Delivery Hero SE | Emerge Commerce vs. 1StdibsCom | Emerge Commerce vs. Natural Health Trend |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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