Correlation Between John B and Virgin Orbit
Can any of the company-specific risk be diversified away by investing in both John B and Virgin Orbit 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 John B and Virgin Orbit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John B Sanfilippo and Virgin Orbit Holdings, you can compare the effects of market volatilities on John B and Virgin Orbit 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 John B with a short position of Virgin Orbit. Check out your portfolio center. Please also check ongoing floating volatility patterns of John B and Virgin Orbit.
Diversification Opportunities for John B and Virgin Orbit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Virgin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John B Sanfilippo and Virgin Orbit Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virgin Orbit Holdings and John B 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 John B Sanfilippo are associated (or correlated) with Virgin Orbit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virgin Orbit Holdings has no effect on the direction of John B i.e., John B and Virgin Orbit go up and down completely randomly.
Pair Corralation between John B and Virgin Orbit
If you would invest 8,600 in John B Sanfilippo on October 20, 2024 and sell it today you would earn a total of 343.00 from holding John B Sanfilippo or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
John B Sanfilippo vs. Virgin Orbit Holdings
Performance |
| Timeline |
| John B Sanfilippo |
| Virgin Orbit Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John B and Virgin Orbit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John B and Virgin Orbit
The main advantage of trading using opposite John B and Virgin Orbit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John B position performs unexpectedly, Virgin Orbit 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 Virgin Orbit will offset losses from the drop in Virgin Orbit's long position.| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. Seneca Foods Corp |
| Virgin Orbit vs. MEDIFAST INC | Virgin Orbit vs. CTS Corporation | Virgin Orbit vs. John B Sanfilippo | Virgin Orbit vs. BBB Foods |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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