Correlation Between S A P and Jamieson Wellness
Can any of the company-specific risk be diversified away by investing in both S A P 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 S A P and Jamieson Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saputo Inc and Jamieson Wellness, you can compare the effects of market volatilities on S A P 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 S A P with a short position of Jamieson Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of S A P and Jamieson Wellness.
Diversification Opportunities for S A P and Jamieson Wellness
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAP and Jamieson is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Saputo Inc and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness and S A P 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 Saputo Inc 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 S A P i.e., S A P and Jamieson Wellness go up and down completely randomly.
Pair Corralation between S A P and Jamieson Wellness
Assuming the 90 days trading horizon Saputo Inc is expected to under-perform the Jamieson Wellness. In addition to that, S A P is 1.01 times more volatile than Jamieson Wellness. It trades about -0.13 of its total potential returns per unit of risk. Jamieson Wellness is currently generating about 0.1 per unit of volatility. If you would invest 3,639 in Jamieson Wellness on September 24, 2024 and sell it today you would earn a total of 95.00 from holding Jamieson Wellness or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saputo Inc vs. Jamieson Wellness
Performance |
| Timeline |
| Saputo Inc |
| Jamieson Wellness |
S A P and Jamieson Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S A P and Jamieson Wellness
The main advantage of trading using opposite S A P and Jamieson Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S A P 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.| S A P vs. Metro Inc | S A P vs. George Weston Limited | S A P vs. Gildan Activewear | S A P vs. Loblaw Companies Limited |
| Jamieson Wellness vs. Saputo Inc | Jamieson Wellness vs. Empire Company Limited | Jamieson Wellness vs. Premium Brands Holdings | Jamieson Wellness vs. Metro Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |