Correlation Between Jamieson Wellness and HOME DEPOT
Can any of the company-specific risk be diversified away by investing in both Jamieson Wellness and HOME DEPOT 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 HOME DEPOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jamieson Wellness and HOME DEPOT CDR, you can compare the effects of market volatilities on Jamieson Wellness and HOME DEPOT 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 HOME DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamieson Wellness and HOME DEPOT.
Diversification Opportunities for Jamieson Wellness and HOME DEPOT
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jamieson and HOME is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jamieson Wellness and HOME DEPOT CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOME DEPOT CDR 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 HOME DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOME DEPOT CDR has no effect on the direction of Jamieson Wellness i.e., Jamieson Wellness and HOME DEPOT go up and down completely randomly.
Pair Corralation between Jamieson Wellness and HOME DEPOT
Assuming the 90 days trading horizon Jamieson Wellness is expected to generate 1.29 times less return on investment than HOME DEPOT. In addition to that, Jamieson Wellness is 1.15 times more volatile than HOME DEPOT CDR. It trades about 0.07 of its total potential returns per unit of risk. HOME DEPOT CDR is currently generating about 0.1 per unit of volatility. If you would invest 2,349 in HOME DEPOT CDR on November 2, 2024 and sell it today you would earn a total of 315.00 from holding HOME DEPOT CDR or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jamieson Wellness vs. HOME DEPOT CDR
Performance |
| Timeline |
| Jamieson Wellness |
| HOME DEPOT CDR |
Jamieson Wellness and HOME DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jamieson Wellness and HOME DEPOT
The main advantage of trading using opposite Jamieson Wellness and HOME DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jamieson Wellness position performs unexpectedly, HOME DEPOT 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 HOME DEPOT will offset losses from the drop in HOME DEPOT's long position.| Jamieson Wellness vs. Enghouse Systems | Jamieson Wellness vs. Kinaxis | Jamieson Wellness vs. Waste Connections | Jamieson Wellness vs. Open Text Corp |
| HOME DEPOT vs. Nova Leap Health | HOME DEPOT vs. Dream Office Real | HOME DEPOT vs. Globex Mining Enterprises | HOME DEPOT vs. UnitedHealth Group CDR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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