Correlation Between Jeffs Brands and Global E
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Global E 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 Global E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Global E Online, you can compare the effects of market volatilities on Jeffs Brands and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Global E.
Diversification Opportunities for Jeffs Brands and Global E
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jeffs and Global is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Global E go up and down completely randomly.
Pair Corralation between Jeffs Brands and Global E
Given the investment horizon of 90 days Jeffs Brands is expected to generate 53.38 times more return on investment than Global E. However, Jeffs Brands is 53.38 times more volatile than Global E Online. It trades about 0.13 of its potential returns per unit of risk. Global E Online is currently generating about 0.34 per unit of risk. If you would invest 31.00 in Jeffs Brands on November 1, 2024 and sell it today you would earn a total of 197.00 from holding Jeffs Brands or generate 635.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Global E Online
Performance |
| Timeline |
| Jeffs Brands |
| Global E Online |
Jeffs Brands and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Global E
The main advantage of trading using opposite Jeffs Brands and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E's long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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