Correlation Between Jamieson Wellness and Quebecor
Can any of the company-specific risk be diversified away by investing in both Jamieson Wellness and Quebecor 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 Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jamieson Wellness and Quebecor, you can compare the effects of market volatilities on Jamieson Wellness and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamieson Wellness and Quebecor.
Diversification Opportunities for Jamieson Wellness and Quebecor
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jamieson and Quebecor is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jamieson Wellness and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Jamieson Wellness i.e., Jamieson Wellness and Quebecor go up and down completely randomly.
Pair Corralation between Jamieson Wellness and Quebecor
Assuming the 90 days trading horizon Jamieson Wellness is expected to generate 1.55 times less return on investment than Quebecor. But when comparing it to its historical volatility, Jamieson Wellness is 1.52 times less risky than Quebecor. It trades about 0.02 of its potential returns per unit of risk. Quebecor is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,022 in Quebecor on October 16, 2024 and sell it today you would earn a total of 171.00 from holding Quebecor or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jamieson Wellness vs. Quebecor
Performance |
| Timeline |
| Jamieson Wellness |
| Quebecor |
Jamieson Wellness and Quebecor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jamieson Wellness and Quebecor
The main advantage of trading using opposite Jamieson Wellness and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jamieson Wellness position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.| Jamieson Wellness vs. Enghouse Systems | Jamieson Wellness vs. Kinaxis | Jamieson Wellness vs. Waste Connections | Jamieson Wellness vs. Open Text Corp |
| Quebecor vs. CVS HEALTH CDR | Quebecor vs. Quipt Home Medical | Quebecor vs. Jamieson Wellness | Quebecor vs. NeXGold Mining Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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