Correlation Between Joh Friedrich and STORE ELECTRONIC
Can any of the company-specific risk be diversified away by investing in both Joh Friedrich and STORE ELECTRONIC 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 Joh Friedrich and STORE ELECTRONIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joh Friedrich Behrens and STORE ELECTRONIC, you can compare the effects of market volatilities on Joh Friedrich and STORE ELECTRONIC 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 Joh Friedrich with a short position of STORE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joh Friedrich and STORE ELECTRONIC.
Diversification Opportunities for Joh Friedrich and STORE ELECTRONIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Joh and STORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Joh Friedrich Behrens and STORE ELECTRONIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE ELECTRONIC and Joh Friedrich 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 Joh Friedrich Behrens are associated (or correlated) with STORE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE ELECTRONIC has no effect on the direction of Joh Friedrich i.e., Joh Friedrich and STORE ELECTRONIC go up and down completely randomly.
Pair Corralation between Joh Friedrich and STORE ELECTRONIC
Assuming the 90 days trading horizon Joh Friedrich Behrens is expected to generate 3.35 times more return on investment than STORE ELECTRONIC. However, Joh Friedrich is 3.35 times more volatile than STORE ELECTRONIC. It trades about 0.04 of its potential returns per unit of risk. STORE ELECTRONIC is currently generating about 0.02 per unit of risk. If you would invest 0.05 in Joh Friedrich Behrens on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Joh Friedrich Behrens or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Joh Friedrich Behrens vs. STORE ELECTRONIC
Performance |
| Timeline |
| Joh Friedrich Behrens |
| STORE ELECTRONIC |
Joh Friedrich and STORE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joh Friedrich and STORE ELECTRONIC
The main advantage of trading using opposite Joh Friedrich and STORE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joh Friedrich position performs unexpectedly, STORE ELECTRONIC 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 STORE ELECTRONIC will offset losses from the drop in STORE ELECTRONIC's long position.| Joh Friedrich vs. AUSNUTRIA DAIRY | Joh Friedrich vs. Highlight Communications AG | Joh Friedrich vs. Charter Communications | Joh Friedrich vs. PREMIER FOODS |
| STORE ELECTRONIC vs. SIVERS SEMICONDUCTORS AB | STORE ELECTRONIC vs. Darden Restaurants | STORE ELECTRONIC vs. Reliance Steel Aluminum | STORE ELECTRONIC vs. Q2M Managementberatung AG |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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