Correlation Between Superior Uniform and Johnson Outdoors
Can any of the company-specific risk be diversified away by investing in both Superior Uniform 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 Superior Uniform and Johnson Outdoors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and Johnson Outdoors, you can compare the effects of market volatilities on Superior Uniform 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 Superior Uniform with a short position of Johnson Outdoors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and Johnson Outdoors.
Diversification Opportunities for Superior Uniform and Johnson Outdoors
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Johnson is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Johnson Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Outdoors and Superior Uniform 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 Superior Uniform Group 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 Superior Uniform i.e., Superior Uniform and Johnson Outdoors go up and down completely randomly.
Pair Corralation between Superior Uniform and Johnson Outdoors
Considering the 90-day investment horizon Superior Uniform Group is expected to generate 1.24 times more return on investment than Johnson Outdoors. However, Superior Uniform is 1.24 times more volatile than Johnson Outdoors. It trades about 0.22 of its potential returns per unit of risk. Johnson Outdoors is currently generating about 0.06 per unit of risk. If you would invest 1,487 in Superior Uniform Group on August 30, 2024 and sell it today you would earn a total of 202.00 from holding Superior Uniform Group or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Uniform Group vs. Johnson Outdoors
Performance |
| Timeline |
| Superior Uniform |
| Johnson Outdoors |
Superior Uniform and Johnson Outdoors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and Johnson Outdoors
The main advantage of trading using opposite Superior Uniform and Johnson Outdoors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform 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.| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. JX Luxventure Limited |
| Johnson Outdoors vs. Vista Outdoor | Johnson Outdoors vs. Clarus Corp | Johnson Outdoors vs. Escalade Incorporated | Johnson Outdoors vs. JAKKS Pacific |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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