Correlation Between Johnson Johnson and Hollysys Automation
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and Hollysys Automation 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 Hollysys Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and Hollysys Automation Technologies, you can compare the effects of market volatilities on Johnson Johnson and Hollysys Automation 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 Hollysys Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Hollysys Automation.
Diversification Opportunities for Johnson Johnson and Hollysys Automation
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Johnson and Hollysys is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and Hollysys Automation Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollysys Automation 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 Hollysys Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollysys Automation has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and Hollysys Automation go up and down completely randomly.
Pair Corralation between Johnson Johnson and Hollysys Automation
If you would invest 2,642 in Hollysys Automation Technologies on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Hollysys Automation Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Johnson Johnson vs. Hollysys Automation Technologi
Performance |
| Timeline |
| Johnson Johnson |
| Hollysys Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Johnson Johnson and Hollysys Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Hollysys Automation
The main advantage of trading using opposite Johnson Johnson and Hollysys Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, Hollysys Automation 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 Hollysys Automation will offset losses from the drop in Hollysys Automation's long position.| Johnson Johnson vs. Capricor Therapeutics | Johnson Johnson vs. Soleno Therapeutics | Johnson Johnson vs. Bio Path Holdings | Johnson Johnson vs. Moleculin Biotech |
| Hollysys Automation vs. Huazhu Group | Hollysys Automation vs. VNET Group DRC | Hollysys Automation vs. Noah Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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