Correlation Between F45 Training and Johnson Outdoors
Can any of the company-specific risk be diversified away by investing in both F45 Training and Johnson Outdoors 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 F45 Training and Johnson Outdoors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between F45 Training Holdings and Johnson Outdoors, you can compare the effects of market volatilities on F45 Training and Johnson Outdoors 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 F45 Training with a short position of Johnson Outdoors. Check out your portfolio center. Please also check ongoing floating volatility patterns of F45 Training and Johnson Outdoors.
Diversification Opportunities for F45 Training and Johnson Outdoors
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between F45 and Johnson is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding F45 Training Holdings and Johnson Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Outdoors and F45 Training 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 F45 Training Holdings are associated (or correlated) with Johnson Outdoors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Outdoors has no effect on the direction of F45 Training i.e., F45 Training and Johnson Outdoors go up and down completely randomly.
Pair Corralation between F45 Training and Johnson Outdoors
Given the investment horizon of 90 days F45 Training Holdings is expected to under-perform the Johnson Outdoors. In addition to that, F45 Training is 2.6 times more volatile than Johnson Outdoors. It trades about -0.17 of its total potential returns per unit of risk. Johnson Outdoors is currently generating about -0.05 per unit of volatility. If you would invest 6,437 in Johnson Outdoors on August 30, 2024 and sell it today you would lose (3,108) from holding Johnson Outdoors or give up 48.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.25% |
| Values | Daily Returns |
F45 Training Holdings vs. Johnson Outdoors
Performance |
| Timeline |
| F45 Training Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Johnson Outdoors |
F45 Training and Johnson Outdoors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with F45 Training and Johnson Outdoors
The main advantage of trading using opposite F45 Training and Johnson Outdoors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F45 Training position performs unexpectedly, Johnson Outdoors 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 Johnson Outdoors will offset losses from the drop in Johnson Outdoors' long position.| F45 Training vs. Life Time Group | F45 Training vs. Bowlero Corp | F45 Training vs. Planet Fitness | F45 Training vs. JAKKS Pacific |
| Johnson Outdoors vs. Vista Outdoor | Johnson Outdoors vs. Clarus Corp | Johnson Outdoors vs. Escalade Incorporated | Johnson Outdoors vs. JAKKS Pacific |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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