Correlation Between Yunji and Jeffs Brands
Can any of the company-specific risk be diversified away by investing in both Yunji 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 Yunji and Jeffs Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunji Inc and Jeffs Brands, you can compare the effects of market volatilities on Yunji 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 Yunji with a short position of Jeffs Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunji and Jeffs Brands.
Diversification Opportunities for Yunji and Jeffs Brands
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yunji and Jeffs is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Yunji Inc and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands and Yunji 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 Yunji Inc 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 Yunji i.e., Yunji and Jeffs Brands go up and down completely randomly.
Pair Corralation between Yunji and Jeffs Brands
Allowing for the 90-day total investment horizon Yunji Inc is expected to under-perform the Jeffs Brands. But the stock apears to be less risky and, when comparing its historical volatility, Yunji Inc is 28.91 times less risky than Jeffs Brands. The stock trades about -0.07 of its potential returns per unit of risk. The Jeffs Brands is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Jeffs Brands on August 28, 2024 and sell it today you would earn a total of 296.00 from holding Jeffs Brands or generate 986.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunji Inc vs. Jeffs Brands
Performance |
| Timeline |
| Yunji Inc |
| Jeffs Brands |
Yunji and Jeffs Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunji and Jeffs Brands
The main advantage of trading using opposite Yunji and Jeffs Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunji 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.The idea behind Yunji Inc and Jeffs Brands 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.| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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