Correlation Between Jeffs Brands and WEBUY GLOBAL
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and WEBUY 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 WEBUY 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 WEBUY GLOBAL LTD, you can compare the effects of market volatilities on Jeffs Brands and WEBUY 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 WEBUY GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and WEBUY GLOBAL.
Diversification Opportunities for Jeffs Brands and WEBUY GLOBAL
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jeffs and WEBUY is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and WEBUY GLOBAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBUY GLOBAL LTD 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 WEBUY GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBUY GLOBAL LTD has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and WEBUY GLOBAL go up and down completely randomly.
Pair Corralation between Jeffs Brands and WEBUY GLOBAL
Given the investment horizon of 90 days Jeffs Brands is expected to generate 4.24 times more return on investment than WEBUY GLOBAL. However, Jeffs Brands is 4.24 times more volatile than WEBUY GLOBAL LTD. It trades about 0.04 of its potential returns per unit of risk. WEBUY GLOBAL LTD is currently generating about -0.04 per unit of risk. If you would invest 567.00 in Jeffs Brands on August 29, 2024 and sell it today you would lose (269.00) from holding Jeffs Brands or give up 47.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 70.99% |
| Values | Daily Returns |
Jeffs Brands vs. WEBUY GLOBAL LTD
Performance |
| Timeline |
| Jeffs Brands |
| WEBUY GLOBAL LTD |
Jeffs Brands and WEBUY GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and WEBUY GLOBAL
The main advantage of trading using opposite Jeffs Brands and WEBUY GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, WEBUY 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 WEBUY GLOBAL will offset losses from the drop in WEBUY GLOBAL's long position.The idea behind Jeffs Brands and WEBUY GLOBAL LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| WEBUY GLOBAL vs. MOGU Inc | WEBUY GLOBAL vs. iPower Inc | WEBUY GLOBAL vs. Jeffs Brands | WEBUY GLOBAL vs. Kidpik Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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