Correlation Between JOHNSON SVC and INPOST SA
Can any of the company-specific risk be diversified away by investing in both JOHNSON SVC and INPOST SA 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 SVC and INPOST SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JOHNSON SVC LS 10 and INPOST SA EO, you can compare the effects of market volatilities on JOHNSON SVC and INPOST SA 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 SVC with a short position of INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JOHNSON SVC and INPOST SA.
Diversification Opportunities for JOHNSON SVC and INPOST SA
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between JOHNSON and INPOST is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JOHNSON SVC LS 10 and INPOST SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPOST SA EO and JOHNSON SVC 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 SVC LS 10 are associated (or correlated) with INPOST SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPOST SA EO has no effect on the direction of JOHNSON SVC i.e., JOHNSON SVC and INPOST SA go up and down completely randomly.
Pair Corralation between JOHNSON SVC and INPOST SA
Assuming the 90 days horizon JOHNSON SVC is expected to generate 2.06 times less return on investment than INPOST SA. In addition to that, JOHNSON SVC is 1.33 times more volatile than INPOST SA EO. It trades about 0.03 of its total potential returns per unit of risk. INPOST SA EO is currently generating about 0.08 per unit of volatility. If you would invest 938.00 in INPOST SA EO on August 30, 2024 and sell it today you would earn a total of 824.00 from holding INPOST SA EO or generate 87.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JOHNSON SVC LS 10 vs. INPOST SA EO
Performance |
| Timeline |
| JOHNSON SVC LS |
| INPOST SA EO |
JOHNSON SVC and INPOST SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JOHNSON SVC and INPOST SA
The main advantage of trading using opposite JOHNSON SVC and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JOHNSON SVC position performs unexpectedly, INPOST SA 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 INPOST SA will offset losses from the drop in INPOST SA's long position.| JOHNSON SVC vs. Cintas | JOHNSON SVC vs. Superior Plus Corp | JOHNSON SVC vs. SIVERS SEMICONDUCTORS AB | JOHNSON SVC vs. Talanx AG |
| INPOST SA vs. Consolidated Communications Holdings | INPOST SA vs. Ribbon Communications | INPOST SA vs. Thai Beverage Public | INPOST SA vs. COMBA TELECOM SYST |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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