Correlation Between JMU and MEDIFAST INC
Can any of the company-specific risk be diversified away by investing in both JMU and MEDIFAST INC 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 JMU and MEDIFAST INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JMU Limited and MEDIFAST INC, you can compare the effects of market volatilities on JMU and MEDIFAST INC 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 JMU with a short position of MEDIFAST INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMU and MEDIFAST INC.
Diversification Opportunities for JMU and MEDIFAST INC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JMU and MEDIFAST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JMU Limited and MEDIFAST INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIFAST INC and JMU 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 JMU Limited are associated (or correlated) with MEDIFAST INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIFAST INC has no effect on the direction of JMU i.e., JMU and MEDIFAST INC go up and down completely randomly.
Pair Corralation between JMU and MEDIFAST INC
If you would invest (100.00) in JMU Limited on January 25, 2024 and sell it today you would earn a total of 100.00 from holding JMU Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JMU Limited vs. MEDIFAST INC
Performance |
| Timeline |
| JMU Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MEDIFAST INC |
JMU and MEDIFAST INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JMU and MEDIFAST INC
The main advantage of trading using opposite JMU and MEDIFAST INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMU position performs unexpectedly, MEDIFAST INC 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 MEDIFAST INC will offset losses from the drop in MEDIFAST INC's long position.The idea behind JMU Limited and MEDIFAST INC 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.| MEDIFAST INC vs. Inter Parfums | MEDIFAST INC vs. European Wax Center | MEDIFAST INC vs. Yatsen Holding | MEDIFAST INC vs. Bruush Oral Care |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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