Correlation Between Jeffs Brands and Jowell Global
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands 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 Jeffs Brands and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Jowell Global, you can compare the effects of market volatilities on Jeffs Brands 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 Jeffs Brands with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Jowell Global.
Diversification Opportunities for Jeffs Brands and Jowell Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jeffs and Jowell is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global 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 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 Jeffs Brands i.e., Jeffs Brands and Jowell Global go up and down completely randomly.
Pair Corralation between Jeffs Brands and Jowell Global
Given the investment horizon of 90 days Jeffs Brands is expected to generate 17.52 times more return on investment than Jowell Global. However, Jeffs Brands is 17.52 times more volatile than Jowell Global. It trades about 0.21 of its potential returns per unit of risk. Jowell Global is currently generating about 0.26 per unit of risk. If you would invest 29.00 in Jeffs Brands on August 24, 2024 and sell it today you would earn a total of 279.00 from holding Jeffs Brands or generate 962.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Jowell Global
Performance |
| Timeline |
| Jeffs Brands |
| Jowell Global |
Jeffs Brands and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Jowell Global
The main advantage of trading using opposite Jeffs Brands and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands 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.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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