Correlation Between Jamieson Wellness and Elixxer

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

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

Diversification Opportunities for Jamieson Wellness and Elixxer

0.0

Correlation Coefficient

Jamieson Wellness  Elixxer

Pay attention - limited upside

The 3 months correlation between Jamieson and Elixxer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jamieson Wellness and Elixxer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elixxer and Jamieson Wellness 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 Jamieson Wellness are associated (or correlated) with Elixxer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elixxer has no effect on the direction of Jamieson Wellness i.e., Jamieson Wellness and Elixxer go up and down completely randomly.

Pair Corralation between Jamieson Wellness and Elixxer

If you would invest  3,339  in Jamieson Wellness on September 22, 2024 and sell it today you would earn a total of  395.00  from holding Jamieson Wellness or generate 11.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jamieson Wellness  vs.  Elixxer

Jamieson Wellness

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jamieson Wellness are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Jamieson Wellness may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Elixxer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elixxer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Elixxer is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Jamieson Wellness and Elixxer

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

The idea behind Jamieson Wellness and Elixxer 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.