Correlation Between Schultze Special and Jupiter Wellness

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

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

Diversification Opportunities for Schultze Special and Jupiter Wellness

-0.82

Correlation Coefficient

Schultze Special  Jupiter Wellness

Pay attention - limited upside

The 3 months correlation between Schultze and Jupiter is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Schultze Special Purpose and Jupiter Wellness Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Wellness Acq and Schultze Special 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 Schultze Special Purpose are associated (or correlated) with Jupiter Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Wellness Acq has no effect on the direction of Schultze Special i.e., Schultze Special and Jupiter Wellness go up and down completely randomly.

Pair Corralation between Schultze Special and Jupiter Wellness

Given the investment horizon of 90 days Schultze Special is expected to generate 2.34 times less return on investment than Jupiter Wellness. But when comparing it to its historical volatility, Schultze Special Purpose is 52.16 times less risky than Jupiter Wellness. It trades about 0.14 of its potential returns per unit of risk. Jupiter Wellness Acquisition is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,012  in Jupiter Wellness Acquisition on September 12, 2024 and sell it today you would lose (447.00) from holding Jupiter Wellness Acquisition or give up 44.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	76.71%
Values	Daily Returns

Schultze Special Purpose  vs.  Jupiter Wellness Acquisition

Schultze Special Purpose

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Schultze Special Purpose has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Schultze Special is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Jupiter Wellness Acq

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jupiter Wellness Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Jupiter Wellness is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Schultze Special and Jupiter Wellness

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

The idea behind Schultze Special Purpose and Jupiter Wellness Acquisition 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.