Correlation Between Kinaxis and Jamieson Wellness
Can any of the company-specific risk be diversified away by investing in both Kinaxis and Jamieson Wellness 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 Kinaxis and Jamieson Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinaxis and Jamieson Wellness, you can compare the effects of market volatilities on Kinaxis and Jamieson Wellness 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 Kinaxis with a short position of Jamieson Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinaxis and Jamieson Wellness.
Diversification Opportunities for Kinaxis and Jamieson Wellness
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinaxis and Jamieson is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kinaxis and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness and Kinaxis 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 Kinaxis are associated (or correlated) with Jamieson Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamieson Wellness has no effect on the direction of Kinaxis i.e., Kinaxis and Jamieson Wellness go up and down completely randomly.
Pair Corralation between Kinaxis and Jamieson Wellness
Assuming the 90 days trading horizon Kinaxis is expected to generate 1.23 times more return on investment than Jamieson Wellness. However, Kinaxis is 1.23 times more volatile than Jamieson Wellness. It trades about 0.03 of its potential returns per unit of risk. Jamieson Wellness is currently generating about 0.02 per unit of risk. If you would invest 14,842 in Kinaxis on August 30, 2024 and sell it today you would earn a total of 3,101 from holding Kinaxis or generate 20.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinaxis vs. Jamieson Wellness
Performance |
| Timeline |
| Kinaxis |
| Jamieson Wellness |
Kinaxis and Jamieson Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinaxis and Jamieson Wellness
The main advantage of trading using opposite Kinaxis and Jamieson Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinaxis position performs unexpectedly, Jamieson Wellness 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 Jamieson Wellness will offset losses from the drop in Jamieson Wellness' long position.| Kinaxis vs. Open Text Corp | Kinaxis vs. Enghouse Systems | Kinaxis vs. Docebo Inc | Kinaxis vs. Descartes Systems Group |
| Jamieson Wellness vs. Amazon CDR | Jamieson Wellness vs. Apple Inc CDR | Jamieson Wellness vs. Alphabet Inc CDR | Jamieson Wellness vs. Walmart Inc 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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