Correlation Between Western Acquisition and JOHNSON
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By analyzing existing cross correlation between Western Acquisition Ventures and JOHNSON JOHNSON, you can compare the effects of market volatilities on Western Acquisition and JOHNSON 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 Western Acquisition with a short position of JOHNSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and JOHNSON.
Diversification Opportunities for Western Acquisition and JOHNSON
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and JOHNSON is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and JOHNSON JOHNSON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHNSON JOHNSON and Western Acquisition 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 Western Acquisition Ventures are associated (or correlated) with JOHNSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHNSON JOHNSON has no effect on the direction of Western Acquisition i.e., Western Acquisition and JOHNSON go up and down completely randomly.
Pair Corralation between Western Acquisition and JOHNSON
Given the investment horizon of 90 days Western Acquisition Ventures is expected to generate 1.17 times more return on investment than JOHNSON. However, Western Acquisition is 1.17 times more volatile than JOHNSON JOHNSON. It trades about 0.02 of its potential returns per unit of risk. JOHNSON JOHNSON is currently generating about -0.01 per unit of risk. If you would invest 1,024 in Western Acquisition Ventures on August 27, 2024 and sell it today you would earn a total of 81.00 from holding Western Acquisition Ventures or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Western Acquisition Ventures vs. JOHNSON JOHNSON
Performance |
| Timeline |
| Western Acquisition |
| JOHNSON JOHNSON |
Western Acquisition and JOHNSON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and JOHNSON
The main advantage of trading using opposite Western Acquisition and JOHNSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition position performs unexpectedly, JOHNSON 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 will offset losses from the drop in JOHNSON's long position.| Western Acquisition vs. PowerUp Acquisition Corp | Western Acquisition vs. Aurora Innovation | Western Acquisition vs. HUMANA INC | Western Acquisition vs. Aquagold International |
| JOHNSON vs. SunLink Health Systems | JOHNSON vs. Western Acquisition Ventures | JOHNSON vs. Waters | JOHNSON vs. Electrovaya Common Shares |
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.
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