Correlation Between Johnson Johnson and CCFNB Bancorp
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and CCFNB Bancorp 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 CCFNB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and CCFNB Bancorp, you can compare the effects of market volatilities on Johnson Johnson and CCFNB Bancorp 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 CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and CCFNB Bancorp.
Diversification Opportunities for Johnson Johnson and CCFNB Bancorp
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Johnson and CCFNB is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp 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 CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and CCFNB Bancorp go up and down completely randomly.
Pair Corralation between Johnson Johnson and CCFNB Bancorp
Considering the 90-day investment horizon Johnson Johnson is expected to under-perform the CCFNB Bancorp. But the stock apears to be less risky and, when comparing its historical volatility, Johnson Johnson is 2.4 times less risky than CCFNB Bancorp. The stock trades about -0.15 of its potential returns per unit of risk. The CCFNB Bancorp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,405 in CCFNB Bancorp on October 26, 2024 and sell it today you would earn a total of 1,095 from holding CCFNB Bancorp or generate 32.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johnson Johnson vs. CCFNB Bancorp
Performance |
| Timeline |
| Johnson Johnson |
| CCFNB Bancorp |
Johnson Johnson and CCFNB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and CCFNB Bancorp
The main advantage of trading using opposite Johnson Johnson and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, CCFNB Bancorp 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 CCFNB Bancorp will offset losses from the drop in CCFNB Bancorp's long position.| Johnson Johnson vs. Collegium Pharmaceutical | Johnson Johnson vs. Phibro Animal Health | Johnson Johnson vs. ANI Pharmaceuticals | Johnson Johnson vs. Procaps Group SA |
| CCFNB Bancorp vs. Susquehanna Community Financial | CCFNB Bancorp vs. Mifflinburg Bancorp | CCFNB Bancorp vs. Woodlands Financial Services | CCFNB Bancorp vs. Penns Woods Bancorp |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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