Correlation Between Grape King and Jourdeness

Can any of the company-specific risk be diversified away by investing in both Grape King and Jourdeness 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 Grape King and Jourdeness into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grape King Bio and Jourdeness Group, you can compare the effects of market volatilities on Grape King and Jourdeness 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 Grape King with a short position of Jourdeness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grape King and Jourdeness.

Diversification Opportunities for Grape King and Jourdeness

0.33

Correlation Coefficient

Grape King  Jourdeness

Weak diversification

The 3 months correlation between Grape and Jourdeness is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Grape King Bio and Jourdeness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jourdeness Group and Grape King 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 Grape King Bio are associated (or correlated) with Jourdeness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jourdeness Group has no effect on the direction of Grape King i.e., Grape King and Jourdeness go up and down completely randomly.

Pair Corralation between Grape King and Jourdeness

Assuming the 90 days trading horizon Grape King Bio is expected to generate 0.39 times more return on investment than Jourdeness. However, Grape King Bio is 2.59 times less risky than Jourdeness. It trades about 0.18 of its potential returns per unit of risk. Jourdeness Group is currently generating about 0.03 per unit of risk. If you would invest  14,200  in Grape King Bio on September 12, 2024 and sell it today you would earn a total of  1,450  from holding Grape King Bio or generate 10.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Grape King Bio  vs.  Jourdeness Group

Grape King Bio

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Grape King Bio are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Grape King may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Jourdeness Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jourdeness Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Jourdeness is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Grape King and Jourdeness

The main advantage of trading using opposite Grape King and Jourdeness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grape King position performs unexpectedly, Jourdeness 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 Jourdeness will offset losses from the drop in Jourdeness' long position.

The idea behind Grape King Bio and Jourdeness Group 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.