Correlation Between Johnson Johnson and Graphic
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By analyzing existing cross correlation between Johnson Johnson and Graphic Packaging International, you can compare the effects of market volatilities on Johnson Johnson and Graphic 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 Graphic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Graphic.
Diversification Opportunities for Johnson Johnson and Graphic
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Johnson and Graphic is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and Graphic Packaging Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging 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 Graphic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and Graphic go up and down completely randomly.
Pair Corralation between Johnson Johnson and Graphic
Considering the 90-day investment horizon Johnson Johnson is expected to generate 3.32 times more return on investment than Graphic. However, Johnson Johnson is 3.32 times more volatile than Graphic Packaging International. It trades about 0.07 of its potential returns per unit of risk. Graphic Packaging International is currently generating about 0.06 per unit of risk. If you would invest 14,441 in Johnson Johnson on August 29, 2024 and sell it today you would earn a total of 1,099 from holding Johnson Johnson or generate 7.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 51.59% |
| Values | Daily Returns |
Johnson Johnson vs. Graphic Packaging Internationa
Performance |
| Timeline |
| Johnson Johnson |
| Graphic Packaging |
Johnson Johnson and Graphic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Graphic
The main advantage of trading using opposite Johnson Johnson and Graphic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, Graphic 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 Graphic will offset losses from the drop in Graphic's long position.| Johnson Johnson vs. Pharvaris BV | Johnson Johnson vs. Brinker International | Johnson Johnson vs. Alcoa Corp | Johnson Johnson vs. Direxion Daily FTSE |
| Graphic vs. AEP TEX INC | Graphic vs. US BANK NATIONAL | Graphic vs. Nasdaq Inc | Graphic vs. Vertiv Holdings Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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