Correlation Between Takung Art and Jowell Global

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

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

Diversification Opportunities for Takung Art and Jowell Global

-0.7

Correlation Coefficient

Takung Art  Jowell Global

Excellent diversification

The 3 months correlation between Takung and Jowell is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Takung Art Co and Jowell Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jowell Global and Takung Art 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 Takung Art Co are associated (or correlated) with Jowell Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jowell Global has no effect on the direction of Takung Art i.e., Takung Art and Jowell Global go up and down completely randomly.

Pair Corralation between Takung Art and Jowell Global

Given the investment horizon of 90 days Takung Art Co is expected to under-perform the Jowell Global. But the stock apears to be less risky and, when comparing its historical volatility, Takung Art Co is 1.54 times less risky than Jowell Global. The stock trades about -0.07 of its potential returns per unit of risk. The Jowell Global is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  811.00  in Jowell Global on August 30, 2024 and sell it today you would lose (471.00) from holding Jowell Global or give up 58.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	31.63%
Values	Daily Returns

Takung Art Co  vs.  Jowell Global

Takung Art

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Takung Art Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Takung Art is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Jowell Global

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jowell Global are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Jowell Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Takung Art and Jowell Global

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

The idea behind Takung Art Co and Jowell Global 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.