Correlation Between Juva Life and Global Hemp

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Can any of the company-specific risk be diversified away by investing in both Juva Life and Global Hemp 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 Juva Life and Global Hemp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juva Life and Global Hemp Group, you can compare the effects of market volatilities on Juva Life and Global Hemp 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 Juva Life with a short position of Global Hemp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juva Life and Global Hemp.

Diversification Opportunities for Juva Life and Global Hemp

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Juva and Global is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Juva Life and Global Hemp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Hemp Group and Juva Life 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 Juva Life are associated (or correlated) with Global Hemp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Hemp Group has no effect on the direction of Juva Life i.e., Juva Life and Global Hemp go up and down completely randomly.

Pair Corralation between Juva Life and Global Hemp

Assuming the 90 days horizon Juva Life is expected to generate 32.73 times more return on investment than Global Hemp. However, Juva Life is 32.73 times more volatile than Global Hemp Group. It trades about 0.2 of its potential returns per unit of risk. Global Hemp Group is currently generating about -0.24 per unit of risk. If you would invest  0.01  in Juva Life on September 6, 2024 and sell it today you would earn a total of  0.00  from holding Juva Life or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Juva Life  vs.  Global Hemp Group

 Performance 
       Timeline  
Juva Life 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Juva Life are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Juva Life reported solid returns over the last few months and may actually be approaching a breakup point.
Global Hemp Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Global Hemp Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Juva Life and Global Hemp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Juva Life and Global Hemp

The main advantage of trading using opposite Juva Life and Global Hemp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juva Life position performs unexpectedly, Global Hemp 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 Global Hemp will offset losses from the drop in Global Hemp's long position.
The idea behind Juva Life and Global Hemp 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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