Correlation Between Johnson Johnson and YPF SA
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and YPF SA 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 Johnson Johnson and YPF SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson Co and YPF SA D, you can compare the effects of market volatilities on Johnson Johnson and YPF SA 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 Johnson Johnson with a short position of YPF SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and YPF SA.
Diversification Opportunities for Johnson Johnson and YPF SA
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Johnson and YPF is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson Co and YPF SA D in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YPF SA D and Johnson Johnson 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 Johnson Johnson Co are associated (or correlated) with YPF SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YPF SA D has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and YPF SA go up and down completely randomly.
Pair Corralation between Johnson Johnson and YPF SA
Assuming the 90 days trading horizon Johnson Johnson Co is expected to generate 0.69 times more return on investment than YPF SA. However, Johnson Johnson Co is 1.45 times less risky than YPF SA. It trades about 0.21 of its potential returns per unit of risk. YPF SA D is currently generating about -0.19 per unit of risk. If you would invest 1,132,500 in Johnson Johnson Co on November 2, 2024 and sell it today you would earn a total of 77,500 from holding Johnson Johnson Co or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Johnson Johnson Co vs. YPF SA D
Performance |
| Timeline |
| Johnson Johnson |
| YPF SA D |
Johnson Johnson and YPF SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and YPF SA
The main advantage of trading using opposite Johnson Johnson and YPF SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, YPF SA 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 YPF SA will offset losses from the drop in YPF SA's long position.| Johnson Johnson vs. Transportadora de Gas | Johnson Johnson vs. Harmony Gold Mining | Johnson Johnson vs. Agrometal SAI | Johnson Johnson vs. Compania de Transporte |
| YPF SA vs. Grupo Financiero Galicia | YPF SA vs. Pampa Energia SA | YPF SA vs. Banco Macro SA | YPF SA vs. Aluar Aluminio Argentino |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |