Correlation Between Jeffs Brands and Naas Technology
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Naas Technology 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 Naas Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Naas Technology ADR, you can compare the effects of market volatilities on Jeffs Brands and Naas Technology 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 Naas Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Naas Technology.
Diversification Opportunities for Jeffs Brands and Naas Technology
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeffs and Naas is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Naas Technology ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naas Technology ADR 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 Naas Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naas Technology ADR has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Naas Technology go up and down completely randomly.
Pair Corralation between Jeffs Brands and Naas Technology
Given the investment horizon of 90 days Jeffs Brands is expected to generate 43.7 times more return on investment than Naas Technology. However, Jeffs Brands is 43.7 times more volatile than Naas Technology ADR. It trades about 0.22 of its potential returns per unit of risk. Naas Technology ADR is currently generating about 0.06 per unit of risk. If you would invest 32.00 in Jeffs Brands on September 3, 2024 and sell it today you would earn a total of 235.00 from holding Jeffs Brands or generate 734.38% 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. Naas Technology ADR
Performance |
| Timeline |
| Jeffs Brands |
| Naas Technology ADR |
Jeffs Brands and Naas Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Naas Technology
The main advantage of trading using opposite Jeffs Brands and Naas Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Naas Technology 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 Naas Technology will offset losses from the drop in Naas Technology's long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Naas Technology vs. Leslies | Naas Technology vs. Sally Beauty Holdings | Naas Technology vs. ODP Corp | Naas Technology vs. 1 800 FLOWERSCOM |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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