Correlation Between Group 6 and Johns Lyng
Can any of the company-specific risk be diversified away by investing in both Group 6 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 Group 6 and Johns Lyng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group 6 Metals and Johns Lyng Group, you can compare the effects of market volatilities on Group 6 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 Group 6 with a short position of Johns Lyng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group 6 and Johns Lyng.
Diversification Opportunities for Group 6 and Johns Lyng
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Group and Johns is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Group 6 Metals 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 Group 6 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 Group 6 Metals 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 Group 6 i.e., Group 6 and Johns Lyng go up and down completely randomly.
Pair Corralation between Group 6 and Johns Lyng
If you would invest 2.50 in Group 6 Metals on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Group 6 Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Group 6 Metals vs. Johns Lyng Group
Performance |
| Timeline |
| Group 6 Metals |
| Johns Lyng Group |
Group 6 and Johns Lyng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group 6 and Johns Lyng
The main advantage of trading using opposite Group 6 and Johns Lyng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group 6 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.| Group 6 vs. Perpetual Credit Income | Group 6 vs. Wt Financial Group | Group 6 vs. Hotel Property Investments | Group 6 vs. Bell Financial Group |
| Johns Lyng vs. Patriot Battery Metals | Johns Lyng vs. Group 6 Metals | Johns Lyng vs. Ainsworth Game Technology | Johns Lyng vs. Capitol Health |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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