Correlation Between Jamieson Wellness and Exxon
Can any of the company-specific risk be diversified away by investing in both Jamieson Wellness and Exxon 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 Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jamieson Wellness and EXXON MOBIL CDR, you can compare the effects of market volatilities on Jamieson Wellness and Exxon 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 Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamieson Wellness and Exxon.
Diversification Opportunities for Jamieson Wellness and Exxon
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jamieson and Exxon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jamieson Wellness and EXXON MOBIL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL 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 Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL CDR has no effect on the direction of Jamieson Wellness i.e., Jamieson Wellness and Exxon go up and down completely randomly.
Pair Corralation between Jamieson Wellness and Exxon
Assuming the 90 days trading horizon Jamieson Wellness is expected to generate 0.35 times more return on investment than Exxon. However, Jamieson Wellness is 2.89 times less risky than Exxon. It trades about 0.02 of its potential returns per unit of risk. EXXON MOBIL CDR is currently generating about 0.0 per unit of risk. If you would invest 3,437 in Jamieson Wellness on September 28, 2024 and sell it today you would earn a total of 213.00 from holding Jamieson Wellness or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.79% |
| Values | Daily Returns |
Jamieson Wellness vs. EXXON MOBIL CDR
Performance |
| Timeline |
| Jamieson Wellness |
| EXXON MOBIL CDR |
Jamieson Wellness and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jamieson Wellness and Exxon
The main advantage of trading using opposite Jamieson Wellness and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jamieson Wellness position performs unexpectedly, Exxon 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 Exxon will offset losses from the drop in Exxon's long position.| Jamieson Wellness vs. Empire Company Limited | Jamieson Wellness vs. Premium Brands Holdings | Jamieson Wellness vs. Metro Inc |
| Exxon vs. Jamieson Wellness | Exxon vs. TUT Fitness Group | Exxon vs. Profound Medical Corp | Exxon vs. Nova Leap Health |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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