Correlation Between Jamieson Wellness and Dominion Lending
Can any of the company-specific risk be diversified away by investing in both Jamieson Wellness and Dominion Lending 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 Jamieson Wellness and Dominion Lending into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jamieson Wellness and Dominion Lending Centres, you can compare the effects of market volatilities on Jamieson Wellness and Dominion Lending 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 Jamieson Wellness with a short position of Dominion Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamieson Wellness and Dominion Lending.
Diversification Opportunities for Jamieson Wellness and Dominion Lending
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jamieson and Dominion is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jamieson Wellness and Dominion Lending Centres in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominion Lending Centres and Jamieson Wellness 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 Jamieson Wellness are associated (or correlated) with Dominion Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominion Lending Centres has no effect on the direction of Jamieson Wellness i.e., Jamieson Wellness and Dominion Lending go up and down completely randomly.
Pair Corralation between Jamieson Wellness and Dominion Lending
Assuming the 90 days trading horizon Jamieson Wellness is expected to under-perform the Dominion Lending. But the stock apears to be less risky and, when comparing its historical volatility, Jamieson Wellness is 1.28 times less risky than Dominion Lending. The stock trades about -0.26 of its potential returns per unit of risk. The Dominion Lending Centres is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 785.00 in Dominion Lending Centres on October 23, 2024 and sell it today you would lose (5.00) from holding Dominion Lending Centres or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jamieson Wellness vs. Dominion Lending Centres
Performance |
| Timeline |
| Jamieson Wellness |
| Dominion Lending Centres |
Jamieson Wellness and Dominion Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jamieson Wellness and Dominion Lending
The main advantage of trading using opposite Jamieson Wellness and Dominion Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jamieson Wellness position performs unexpectedly, Dominion Lending 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 Dominion Lending will offset losses from the drop in Dominion Lending's long position.| Jamieson Wellness vs. Enghouse Systems | Jamieson Wellness vs. Kinaxis | Jamieson Wellness vs. Waste Connections | Jamieson Wellness vs. Open Text Corp |
| Dominion Lending vs. Titanium Transportation Group | Dominion Lending vs. Alignvest Acquisition II | Dominion Lending vs. Propel Holdings | Dominion Lending vs. Dexterra Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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