Correlation Between Apiam Animal and Johns Lyng
Can any of the company-specific risk be diversified away by investing in both Apiam Animal and Johns Lyng 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 Apiam Animal and Johns Lyng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apiam Animal Health and Johns Lyng Group, you can compare the effects of market volatilities on Apiam Animal and Johns Lyng 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 Apiam Animal with a short position of Johns Lyng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apiam Animal and Johns Lyng.
Diversification Opportunities for Apiam Animal and Johns Lyng
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apiam and Johns is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Apiam Animal Health and Johns Lyng Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johns Lyng Group and Apiam Animal 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 Apiam Animal Health are associated (or correlated) with Johns Lyng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johns Lyng Group has no effect on the direction of Apiam Animal i.e., Apiam Animal and Johns Lyng go up and down completely randomly.
Pair Corralation between Apiam Animal and Johns Lyng
Assuming the 90 days trading horizon Apiam Animal Health is expected to under-perform the Johns Lyng. In addition to that, Apiam Animal is 1.74 times more volatile than Johns Lyng Group. It trades about -0.38 of its total potential returns per unit of risk. Johns Lyng Group is currently generating about 0.2 per unit of volatility. If you would invest 383.00 in Johns Lyng Group on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Johns Lyng Group or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apiam Animal Health vs. Johns Lyng Group
Performance |
| Timeline |
| Apiam Animal Health |
| Johns Lyng Group |
Apiam Animal and Johns Lyng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apiam Animal and Johns Lyng
The main advantage of trading using opposite Apiam Animal and Johns Lyng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apiam Animal position performs unexpectedly, Johns Lyng 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 Johns Lyng will offset losses from the drop in Johns Lyng's long position.| Apiam Animal vs. Pinnacle Investment Management | Apiam Animal vs. Aeon Metals | Apiam Animal vs. Nufarm Finance NZ | Apiam Animal vs. Clime Investment Management |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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