Correlation Between IMedia Brands and Jumei Intl

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Can any of the company-specific risk be diversified away by investing in both IMedia Brands and Jumei Intl 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 IMedia Brands and Jumei Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMedia Brands and Jumei Intl Hldg, you can compare the effects of market volatilities on IMedia Brands and Jumei Intl 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 IMedia Brands with a short position of Jumei Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMedia Brands and Jumei Intl.

Diversification Opportunities for IMedia Brands and Jumei Intl

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between IMedia and Jumei is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMedia Brands and Jumei Intl Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumei Intl Hldg and IMedia Brands 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 IMedia Brands are associated (or correlated) with Jumei Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumei Intl Hldg has no effect on the direction of IMedia Brands i.e., IMedia Brands and Jumei Intl go up and down completely randomly.

Pair Corralation between IMedia Brands and Jumei Intl

If you would invest (100.00) in Jumei Intl Hldg on December 30, 2023 and sell it today you would earn a total of  100.00  from holding Jumei Intl Hldg or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

IMedia Brands  vs.  Jumei Intl Hldg

 Performance 
       Timeline  
IMedia Brands 

Risk-Adjusted Performance

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Over the last 90 days IMedia Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, IMedia Brands is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.
Jumei Intl Hldg 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Jumei Intl Hldg has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Jumei Intl is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

IMedia Brands and Jumei Intl Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IMedia Brands and Jumei Intl

The main advantage of trading using opposite IMedia Brands and Jumei Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMedia Brands position performs unexpectedly, Jumei Intl 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 Jumei Intl will offset losses from the drop in Jumei Intl's long position.
The idea behind IMedia Brands and Jumei Intl Hldg 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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