Correlation Between Journey Medical and Lifecore Biomedical
Can any of the company-specific risk be diversified away by investing in both Journey Medical and Lifecore Biomedical 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 Journey Medical and Lifecore Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Journey Medical Corp and Lifecore Biomedical, you can compare the effects of market volatilities on Journey Medical and Lifecore Biomedical 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 Journey Medical with a short position of Lifecore Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Journey Medical and Lifecore Biomedical.
Diversification Opportunities for Journey Medical and Lifecore Biomedical
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Journey and Lifecore is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Journey Medical Corp and Lifecore Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifecore Biomedical and Journey Medical 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 Journey Medical Corp are associated (or correlated) with Lifecore Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifecore Biomedical has no effect on the direction of Journey Medical i.e., Journey Medical and Lifecore Biomedical go up and down completely randomly.
Pair Corralation between Journey Medical and Lifecore Biomedical
Given the investment horizon of 90 days Journey Medical Corp is expected to generate 0.61 times more return on investment than Lifecore Biomedical. However, Journey Medical Corp is 1.64 times less risky than Lifecore Biomedical. It trades about -0.05 of its potential returns per unit of risk. Lifecore Biomedical is currently generating about -0.11 per unit of risk. If you would invest 437.00 in Journey Medical Corp on October 26, 2024 and sell it today you would lose (21.00) from holding Journey Medical Corp or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Journey Medical Corp vs. Lifecore Biomedical
Performance |
| Timeline |
| Journey Medical Corp |
| Lifecore Biomedical |
Journey Medical and Lifecore Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Journey Medical and Lifecore Biomedical
The main advantage of trading using opposite Journey Medical and Lifecore Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Journey Medical position performs unexpectedly, Lifecore Biomedical 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 Lifecore Biomedical will offset losses from the drop in Lifecore Biomedical's long position.| Journey Medical vs. Evoke Pharma | Journey Medical vs. Avadel Pharmaceuticals PLC | Journey Medical vs. Aquestive Therapeutics | Journey Medical vs. Cresco Labs |
| Lifecore Biomedical vs. Shuttle Pharmaceuticals | Lifecore Biomedical vs. Tilray Inc | Lifecore Biomedical vs. Kamada | Lifecore Biomedical vs. Cumberland Pharmaceuticals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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