Correlation Between Thermwood and John Bean
Can any of the company-specific risk be diversified away by investing in both Thermwood and John Bean 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 Thermwood and John Bean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermwood and John Bean Technologies, you can compare the effects of market volatilities on Thermwood and John Bean 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 Thermwood with a short position of John Bean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermwood and John Bean.
Diversification Opportunities for Thermwood and John Bean
Excellent diversification
The 3 months correlation between Thermwood and John is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Thermwood and John Bean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Bean Technologies and Thermwood 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 Thermwood are associated (or correlated) with John Bean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Bean Technologies has no effect on the direction of Thermwood i.e., Thermwood and John Bean go up and down completely randomly.
Pair Corralation between Thermwood and John Bean
If you would invest 11,848 in John Bean Technologies on September 12, 2024 and sell it today you would earn a total of 653.00 from holding John Bean Technologies or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Thermwood vs. John Bean Technologies
Performance |
| Timeline |
| Thermwood |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Bean Technologies |
Thermwood and John Bean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermwood and John Bean
The main advantage of trading using opposite Thermwood and John Bean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermwood position performs unexpectedly, John Bean 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 Bean will offset losses from the drop in John Bean's long position.| Thermwood vs. John Bean Technologies | Thermwood vs. Helios Technologies | Thermwood vs. Middleby Corp | Thermwood vs. Flowserve |
| John Bean vs. Pentair PLC | John Bean vs. Parker Hannifin | John Bean vs. Emerson Electric | John Bean vs. Smith AO |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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