Correlation Between Johnson Johnson and Sumo Logic
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and Sumo Logic 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 Sumo Logic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and Sumo Logic, you can compare the effects of market volatilities on Johnson Johnson and Sumo Logic 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 Sumo Logic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Sumo Logic.
Diversification Opportunities for Johnson Johnson and Sumo Logic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Johnson and Sumo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and Sumo Logic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumo Logic 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 Sumo Logic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumo Logic has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and Sumo Logic go up and down completely randomly.
Pair Corralation between Johnson Johnson and Sumo Logic
If you would invest (100.00) in Sumo Logic on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Sumo Logic or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Johnson Johnson vs. Sumo Logic
Performance |
| Timeline |
| Johnson Johnson |
| Sumo Logic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Johnson Johnson and Sumo Logic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Sumo Logic
The main advantage of trading using opposite Johnson Johnson and Sumo Logic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, Sumo Logic 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 Sumo Logic will offset losses from the drop in Sumo Logic's long position.| Johnson Johnson vs. Merck Company | Johnson Johnson vs. Victory Integrity Smallmid Cap | Johnson Johnson vs. Hilton Worldwide Holdings | Johnson Johnson vs. NVIDIA |
| Sumo Logic vs. PagSeguro Digital | Sumo Logic vs. Endava | Sumo Logic vs. Nutanix | Sumo Logic vs. Palo Alto Networks |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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