Correlation Between Newegg Commerce and Jeffs Brands
Can any of the company-specific risk be diversified away by investing in both Newegg Commerce and Jeffs Brands 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 Newegg Commerce and Jeffs Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newegg Commerce and Jeffs Brands, you can compare the effects of market volatilities on Newegg Commerce and Jeffs Brands 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 Newegg Commerce with a short position of Jeffs Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newegg Commerce and Jeffs Brands.
Diversification Opportunities for Newegg Commerce and Jeffs Brands
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newegg and Jeffs is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Newegg Commerce and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands and Newegg Commerce 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 Newegg Commerce are associated (or correlated) with Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of Newegg Commerce i.e., Newegg Commerce and Jeffs Brands go up and down completely randomly.
Pair Corralation between Newegg Commerce and Jeffs Brands
Given the investment horizon of 90 days Newegg Commerce is expected to generate 0.95 times more return on investment than Jeffs Brands. However, Newegg Commerce is 1.05 times less risky than Jeffs Brands. It trades about 0.02 of its potential returns per unit of risk. Jeffs Brands is currently generating about -0.25 per unit of risk. If you would invest 45.00 in Newegg Commerce on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Newegg Commerce or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newegg Commerce vs. Jeffs Brands
Performance |
| Timeline |
| Newegg Commerce |
| Jeffs Brands |
Newegg Commerce and Jeffs Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newegg Commerce and Jeffs Brands
The main advantage of trading using opposite Newegg Commerce and Jeffs Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newegg Commerce position performs unexpectedly, Jeffs Brands 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 Jeffs Brands will offset losses from the drop in Jeffs Brands' long position.| Newegg Commerce vs. Jeffs Brands | Newegg Commerce vs. Jumia Technologies AG | Newegg Commerce vs. Kidpik Corp | Newegg Commerce vs. Qurate Retail Series |
| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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