Correlation Between OneSpaWorld Holdings and Johnson Outdoors
Can any of the company-specific risk be diversified away by investing in both OneSpaWorld Holdings and Johnson Outdoors 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 OneSpaWorld Holdings and Johnson Outdoors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSpaWorld Holdings and Johnson Outdoors, you can compare the effects of market volatilities on OneSpaWorld Holdings and Johnson Outdoors 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 OneSpaWorld Holdings with a short position of Johnson Outdoors. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpaWorld Holdings and Johnson Outdoors.
Diversification Opportunities for OneSpaWorld Holdings and Johnson Outdoors
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OneSpaWorld and Johnson is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding OneSpaWorld Holdings and Johnson Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Outdoors and OneSpaWorld Holdings 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 OneSpaWorld Holdings are associated (or correlated) with Johnson Outdoors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Outdoors has no effect on the direction of OneSpaWorld Holdings i.e., OneSpaWorld Holdings and Johnson Outdoors go up and down completely randomly.
Pair Corralation between OneSpaWorld Holdings and Johnson Outdoors
Considering the 90-day investment horizon OneSpaWorld Holdings is expected to generate 0.94 times more return on investment than Johnson Outdoors. However, OneSpaWorld Holdings is 1.07 times less risky than Johnson Outdoors. It trades about 0.32 of its potential returns per unit of risk. Johnson Outdoors is currently generating about -0.04 per unit of risk. If you would invest 1,696 in OneSpaWorld Holdings on August 24, 2024 and sell it today you would earn a total of 214.00 from holding OneSpaWorld Holdings or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSpaWorld Holdings vs. Johnson Outdoors
Performance |
| Timeline |
| OneSpaWorld Holdings |
| Johnson Outdoors |
OneSpaWorld Holdings and Johnson Outdoors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSpaWorld Holdings and Johnson Outdoors
The main advantage of trading using opposite OneSpaWorld Holdings and Johnson Outdoors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpaWorld Holdings position performs unexpectedly, Johnson Outdoors 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 Johnson Outdoors will offset losses from the drop in Johnson Outdoors' long position.| OneSpaWorld Holdings vs. Escalade Incorporated | OneSpaWorld Holdings vs. Johnson Outdoors | OneSpaWorld Holdings vs. Clarus Corp | OneSpaWorld Holdings vs. Six Flags Entertainment |
| Johnson Outdoors vs. Vista Outdoor | Johnson Outdoors vs. Six Flags Entertainment | Johnson Outdoors vs. Canlan Ice Sports | Johnson Outdoors vs. OneSpaWorld Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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