Correlation Between Oriental Culture and Jowell Global
Can any of the company-specific risk be diversified away by investing in both Oriental Culture and Jowell 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 Oriental Culture and Jowell Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Culture Holding and Jowell Global, you can compare the effects of market volatilities on Oriental Culture and Jowell 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 Oriental Culture with a short position of Jowell Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and Jowell Global.
Diversification Opportunities for Oriental Culture and Jowell Global
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oriental and Jowell is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and Oriental Culture 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 Oriental Culture Holding are associated (or correlated) with Jowell Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jowell Global has no effect on the direction of Oriental Culture i.e., Oriental Culture and Jowell Global go up and down completely randomly.
Pair Corralation between Oriental Culture and Jowell Global
Considering the 90-day investment horizon Oriental Culture is expected to generate 43.11 times less return on investment than Jowell Global. But when comparing it to its historical volatility, Oriental Culture Holding is 1.67 times less risky than Jowell Global. It trades about 0.0 of its potential returns per unit of risk. Jowell Global is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 677.00 in Jowell Global on October 24, 2024 and sell it today you would lose (372.00) from holding Jowell Global or give up 54.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Oriental Culture Holding vs. Jowell Global
Performance |
| Timeline |
| Oriental Culture Holding |
| Jowell Global |
Oriental Culture and Jowell Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and Jowell Global
The main advantage of trading using opposite Oriental Culture and Jowell Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture position performs unexpectedly, Jowell 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 Jowell Global will offset losses from the drop in Jowell Global's long position.| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
| Jowell Global vs. Oriental Culture Holding | Jowell Global vs. Hour Loop | Jowell Global vs. Qurate Retail Series | Jowell Global vs. Emerge Commerce |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |