Correlation Between Jowell Global and BoohooCom PLC
Can any of the company-specific risk be diversified away by investing in both Jowell Global and BoohooCom PLC 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 Jowell Global and BoohooCom PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jowell Global and BoohooCom PLC ADR, you can compare the effects of market volatilities on Jowell Global and BoohooCom PLC 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 Jowell Global with a short position of BoohooCom PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jowell Global and BoohooCom PLC.
Diversification Opportunities for Jowell Global and BoohooCom PLC
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jowell and BoohooCom is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jowell Global and BoohooCom PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BoohooCom PLC ADR and Jowell Global 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 Jowell Global are associated (or correlated) with BoohooCom PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BoohooCom PLC ADR has no effect on the direction of Jowell Global i.e., Jowell Global and BoohooCom PLC go up and down completely randomly.
Pair Corralation between Jowell Global and BoohooCom PLC
Given the investment horizon of 90 days Jowell Global is expected to generate 5.66 times more return on investment than BoohooCom PLC. However, Jowell Global is 5.66 times more volatile than BoohooCom PLC ADR. It trades about 0.31 of its potential returns per unit of risk. BoohooCom PLC ADR is currently generating about 0.3 per unit of risk. If you would invest 178.00 in Jowell Global on September 1, 2024 and sell it today you would earn a total of 162.00 from holding Jowell Global or generate 91.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Jowell Global vs. BoohooCom PLC ADR
Performance |
| Timeline |
| Jowell Global |
| BoohooCom PLC ADR |
Jowell Global and BoohooCom PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jowell Global and BoohooCom PLC
The main advantage of trading using opposite Jowell Global and BoohooCom PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jowell Global position performs unexpectedly, BoohooCom PLC 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 BoohooCom PLC will offset losses from the drop in BoohooCom PLC's long position.| Jowell Global vs. Oriental Culture Holding | Jowell Global vs. Hour Loop | Jowell Global vs. Qurate Retail Series | Jowell Global vs. Emerge Commerce |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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