Correlation Between Planting Hope and John B
Can any of the company-specific risk be diversified away by investing in both Planting Hope and John B 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 Planting Hope and John B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Planting Hope and John B Sanfilippo, you can compare the effects of market volatilities on Planting Hope and John B 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 Planting Hope with a short position of John B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planting Hope and John B.
Diversification Opportunities for Planting Hope and John B
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Planting and John is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding The Planting Hope and John B Sanfilippo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John B Sanfilippo and Planting Hope 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 The Planting Hope are associated (or correlated) with John B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John B Sanfilippo has no effect on the direction of Planting Hope i.e., Planting Hope and John B go up and down completely randomly.
Pair Corralation between Planting Hope and John B
Assuming the 90 days horizon The Planting Hope is expected to generate 156.05 times more return on investment than John B. However, Planting Hope is 156.05 times more volatile than John B Sanfilippo. It trades about 0.27 of its potential returns per unit of risk. John B Sanfilippo is currently generating about 0.21 per unit of risk. If you would invest 0.01 in The Planting Hope on October 23, 2024 and sell it today you would earn a total of 0.99 from holding The Planting Hope or generate 9900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
The Planting Hope vs. John B Sanfilippo
Performance |
| Timeline |
| Planting Hope |
| John B Sanfilippo |
Planting Hope and John B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planting Hope and John B
The main advantage of trading using opposite Planting Hope and John B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planting Hope position performs unexpectedly, John B 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 John B will offset losses from the drop in John B's long position.| Planting Hope vs. Planting Hope Co | Planting Hope vs. Pond Technologies Holdings | Planting Hope vs. Grand Havana | Planting Hope vs. PlantFuel Life |
| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. J J Snack |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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