Correlation Between Johnson Johnson and Augmedix
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and Augmedix 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 Augmedix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and Augmedix, you can compare the effects of market volatilities on Johnson Johnson and Augmedix 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 Augmedix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Augmedix.
Diversification Opportunities for Johnson Johnson and Augmedix
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Johnson and Augmedix is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and Augmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augmedix 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 are associated (or correlated) with Augmedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augmedix has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and Augmedix go up and down completely randomly.
Pair Corralation between Johnson Johnson and Augmedix
Considering the 90-day investment horizon Johnson Johnson is expected to generate 27.86 times less return on investment than Augmedix. But when comparing it to its historical volatility, Johnson Johnson is 16.88 times less risky than Augmedix. It trades about 0.07 of its potential returns per unit of risk. Augmedix is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Augmedix on August 29, 2024 and sell it today you would earn a total of 143.00 from holding Augmedix or generate 155.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.05% |
| Values | Daily Returns |
Johnson Johnson vs. Augmedix
Performance |
| Timeline |
| Johnson Johnson |
| Augmedix |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Johnson Johnson and Augmedix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Augmedix
The main advantage of trading using opposite Johnson Johnson and Augmedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, Augmedix 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 Augmedix will offset losses from the drop in Augmedix's long position.| Johnson Johnson vs. Pharvaris BV | Johnson Johnson vs. Brinker International | Johnson Johnson vs. Alcoa Corp | Johnson Johnson vs. Direxion Daily FTSE |
| Augmedix vs. In8bio Inc | Augmedix vs. Dermata Therapeutics | Augmedix vs. Elevation Oncology | Augmedix vs. Aclarion |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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