Correlation Between Jeffs Brands and Faraday Future
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Faraday Future 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 Jeffs Brands and Faraday Future into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Faraday Future Intelligent, you can compare the effects of market volatilities on Jeffs Brands and Faraday Future 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 Jeffs Brands with a short position of Faraday Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Faraday Future.
Diversification Opportunities for Jeffs Brands and Faraday Future
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jeffs and Faraday is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Faraday Future Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Faraday Future Intel and Jeffs 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 Jeffs Brands are associated (or correlated) with Faraday Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Faraday Future Intel has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Faraday Future go up and down completely randomly.
Pair Corralation between Jeffs Brands and Faraday Future
Given the investment horizon of 90 days Jeffs Brands is expected to under-perform the Faraday Future. But the stock apears to be less risky and, when comparing its historical volatility, Jeffs Brands is 2.83 times less risky than Faraday Future. The stock trades about -0.29 of its potential returns per unit of risk. The Faraday Future Intelligent is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.65 in Faraday Future Intelligent on August 21, 2025 and sell it today you would lose (1.86) from holding Faraday Future Intelligent or give up 32.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Faraday Future Intelligent
Performance |
| Timeline |
| Jeffs Brands |
| Faraday Future Intel |
Jeffs Brands and Faraday Future Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Faraday Future
The main advantage of trading using opposite Jeffs Brands and Faraday Future positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Faraday Future 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 Faraday Future will offset losses from the drop in Faraday Future's long position.| Jeffs Brands vs. Boqii Holding Limited | Jeffs Brands vs. Arko Corp | Jeffs Brands vs. ZOOZ Power Ltd | Jeffs Brands vs. Charles Colvard |
| Faraday Future vs. Vision Marine Technologies | Faraday Future vs. ZOOZ Power Ltd | Faraday Future vs. MKDWELL Tech Ordinary | Faraday Future vs. Jeffs Brands |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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