Correlation Between Stanley Black and Joh Friedrich
Can any of the company-specific risk be diversified away by investing in both Stanley Black and Joh Friedrich 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 Stanley Black and Joh Friedrich into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stanley Black Decker and Joh Friedrich Behrens, you can compare the effects of market volatilities on Stanley Black and Joh Friedrich 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 Stanley Black with a short position of Joh Friedrich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stanley Black and Joh Friedrich.
Diversification Opportunities for Stanley Black and Joh Friedrich
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stanley and Joh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stanley Black Decker and Joh Friedrich Behrens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joh Friedrich Behrens and Stanley Black 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 Stanley Black Decker are associated (or correlated) with Joh Friedrich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joh Friedrich Behrens has no effect on the direction of Stanley Black i.e., Stanley Black and Joh Friedrich go up and down completely randomly.
Pair Corralation between Stanley Black and Joh Friedrich
If you would invest (100.00) in Joh Friedrich Behrens on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Joh Friedrich Behrens or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stanley Black Decker vs. Joh Friedrich Behrens
Performance |
| Timeline |
| Stanley Black Decker |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Joh Friedrich Behrens |
Stanley Black and Joh Friedrich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stanley Black and Joh Friedrich
The main advantage of trading using opposite Stanley Black and Joh Friedrich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stanley Black position performs unexpectedly, Joh Friedrich 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 Joh Friedrich will offset losses from the drop in Joh Friedrich's long position.| Stanley Black vs. CITIC Telecom International | Stanley Black vs. AOYAMA TRADING | Stanley Black vs. Virtus Investment Partners | Stanley Black vs. SEI INVESTMENTS |
| Joh Friedrich vs. MeVis Medical Solutions | Joh Friedrich vs. CARSALESCOM | Joh Friedrich vs. SALESFORCE INC CDR | Joh Friedrich vs. American Eagle Outfitters |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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