Correlation Between Leafly Holdings and China Jo
Can any of the company-specific risk be diversified away by investing in both Leafly Holdings and China Jo 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 Leafly Holdings and China Jo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leafly Holdings and China Jo Jo Drugstores, you can compare the effects of market volatilities on Leafly Holdings and China Jo 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 Leafly Holdings with a short position of China Jo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leafly Holdings and China Jo.
Diversification Opportunities for Leafly Holdings and China Jo
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Leafly and China is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Leafly Holdings and China Jo Jo Drugstores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Jo Jo and Leafly Holdings 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 Leafly Holdings are associated (or correlated) with China Jo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Jo Jo has no effect on the direction of Leafly Holdings i.e., Leafly Holdings and China Jo go up and down completely randomly.
Pair Corralation between Leafly Holdings and China Jo
Assuming the 90 days horizon Leafly Holdings is expected to generate 14.86 times more return on investment than China Jo. However, Leafly Holdings is 14.86 times more volatile than China Jo Jo Drugstores. It trades about 0.1 of its potential returns per unit of risk. China Jo Jo Drugstores is currently generating about -0.07 per unit of risk. If you would invest 2.50 in Leafly Holdings on August 27, 2024 and sell it today you would lose (0.33) from holding Leafly Holdings or give up 13.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.54% |
| Values | Daily Returns |
Leafly Holdings vs. China Jo Jo Drugstores
Performance |
| Timeline |
| Leafly Holdings |
| China Jo Jo |
Leafly Holdings and China Jo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leafly Holdings and China Jo
The main advantage of trading using opposite Leafly Holdings and China Jo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leafly Holdings position performs unexpectedly, China Jo 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 China Jo will offset losses from the drop in China Jo's long position.| Leafly Holdings vs. Leafly Holdings | Leafly Holdings vs. WM Technology | Leafly Holdings vs. Revelation Biosciences | Leafly Holdings vs. AEye Inc |
| China Jo vs. SunLink Health Systems | China Jo vs. Leafly Holdings | China Jo vs. Allstar Health Brands | China Jo vs. Walgreens Boots Alliance |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |