Correlation Between Jayud Global and Lifevantage

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

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

Diversification Opportunities for Jayud Global and Lifevantage

0.59

Correlation Coefficient

Jayud Global  Lifevantage

Very weak diversification

The 3 months correlation between Jayud and Lifevantage is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jayud Global Logistics and Lifevantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifevantage and Jayud Global 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 Jayud Global Logistics are associated (or correlated) with Lifevantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifevantage has no effect on the direction of Jayud Global i.e., Jayud Global and Lifevantage go up and down completely randomly.

Pair Corralation between Jayud Global and Lifevantage

Considering the 90-day investment horizon Jayud Global Logistics is expected to generate 3.62 times more return on investment than Lifevantage. However, Jayud Global is 3.62 times more volatile than Lifevantage. It trades about 0.18 of its potential returns per unit of risk. Lifevantage is currently generating about 0.2 per unit of risk. If you would invest  82.00  in Jayud Global Logistics on September 14, 2024 and sell it today you would earn a total of  139.00  from holding Jayud Global Logistics or generate 169.51% return on investment over 90 days.

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

Jayud Global Logistics  vs.  Lifevantage

Jayud Global Logistics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Jayud Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Lifevantage

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lifevantage are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Lifevantage displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jayud Global and Lifevantage

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

The idea behind Jayud Global Logistics and Lifevantage 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.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.