Correlation Between Johnson Health and O TA
Can any of the company-specific risk be diversified away by investing in both Johnson Health and O TA 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 Johnson Health and O TA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Health Tech and O TA Precision Industry, you can compare the effects of market volatilities on Johnson Health and O TA 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 Johnson Health with a short position of O TA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Health and O TA.
Diversification Opportunities for Johnson Health and O TA
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Johnson and 8924 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Health Tech and O TA Precision Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O TA Precision and Johnson Health 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 Johnson Health Tech are associated (or correlated) with O TA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O TA Precision has no effect on the direction of Johnson Health i.e., Johnson Health and O TA go up and down completely randomly.
Pair Corralation between Johnson Health and O TA
Assuming the 90 days trading horizon Johnson Health Tech is expected to generate 12.88 times more return on investment than O TA. However, Johnson Health is 12.88 times more volatile than O TA Precision Industry. It trades about 0.08 of its potential returns per unit of risk. O TA Precision Industry is currently generating about -0.37 per unit of risk. If you would invest 14,800 in Johnson Health Tech on August 29, 2024 and sell it today you would earn a total of 950.00 from holding Johnson Health Tech or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johnson Health Tech vs. O TA Precision Industry
Performance |
| Timeline |
| Johnson Health Tech |
| O TA Precision |
Johnson Health and O TA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Health and O TA
The main advantage of trading using opposite Johnson Health and O TA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Health position performs unexpectedly, O TA 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 O TA will offset losses from the drop in O TA's long position.| Johnson Health vs. Yulon Finance Corp | Johnson Health vs. Taiwan Secom Co | Johnson Health vs. Pou Chen Corp | Johnson Health vs. Great Wall Enterprise |
| O TA vs. Advanced International Multitech | O TA vs. Dynamic Precision Industry | O TA vs. Greatek Electronics | O TA vs. Qisda Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |