Correlation Between Jupiter WellnessInc and Eagle Pharmaceuticals

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

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

Diversification Opportunities for Jupiter WellnessInc and Eagle Pharmaceuticals

-0.74

Correlation Coefficient

Jupiter WellnessInc  Eagle Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Jupiter and Eagle is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter WellnessInc and Eagle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pharmaceuticals and Jupiter WellnessInc 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 Jupiter WellnessInc are associated (or correlated) with Eagle Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pharmaceuticals has no effect on the direction of Jupiter WellnessInc i.e., Jupiter WellnessInc and Eagle Pharmaceuticals go up and down completely randomly.

Pair Corralation between Jupiter WellnessInc and Eagle Pharmaceuticals

If you would invest  139.00  in Jupiter WellnessInc on February 1, 2024 and sell it today you would earn a total of  0.00  from holding Jupiter WellnessInc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.55%
Values	Daily Returns

Jupiter WellnessInc  vs.  Eagle Pharmaceuticals

Jupiter WellnessInc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Eagle Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eagle Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Jupiter WellnessInc and Eagle Pharmaceuticals

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

The idea behind Jupiter WellnessInc and Eagle Pharmaceuticals 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.