Correlation Between Jeffs Brands and Newegg Commerce
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Newegg 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 Newegg 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 Newegg Commerce, you can compare the effects of market volatilities on Jeffs Brands and Newegg 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 Newegg Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Newegg Commerce.
Diversification Opportunities for Jeffs Brands and Newegg Commerce
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jeffs and Newegg is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Newegg Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newegg 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 Newegg Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newegg Commerce has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Newegg Commerce go up and down completely randomly.
Pair Corralation between Jeffs Brands and Newegg Commerce
Given the investment horizon of 90 days Jeffs Brands is expected to generate 55.06 times more return on investment than Newegg Commerce. However, Jeffs Brands is 55.06 times more volatile than Newegg Commerce. It trades about 0.21 of its potential returns per unit of risk. Newegg Commerce is currently generating about -0.04 per unit of risk. If you would invest 27.00 in Jeffs Brands on August 30, 2024 and sell it today you would earn a total of 271.00 from holding Jeffs Brands or generate 1003.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Newegg Commerce
Performance |
| Timeline |
| Jeffs Brands |
| Newegg Commerce |
Jeffs Brands and Newegg Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Newegg Commerce
The main advantage of trading using opposite Jeffs Brands and Newegg Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Newegg 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 Newegg Commerce will offset losses from the drop in Newegg Commerce's long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Newegg Commerce vs. Jeffs Brands | Newegg Commerce vs. Jumia Technologies AG | Newegg Commerce vs. Kidpik Corp | Newegg Commerce vs. Qurate Retail Series |
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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