Correlation Between Johnson Outdoors and Sony
Can any of the company-specific risk be diversified away by investing in both Johnson Outdoors and Sony 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 Johnson Outdoors and Sony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Outdoors and Sony Group, you can compare the effects of market volatilities on Johnson Outdoors and Sony 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 Johnson Outdoors with a short position of Sony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Outdoors and Sony.
Diversification Opportunities for Johnson Outdoors and Sony
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Johnson and Sony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Outdoors and Sony Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group and Johnson Outdoors 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 Johnson Outdoors are associated (or correlated) with Sony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Group has no effect on the direction of Johnson Outdoors i.e., Johnson Outdoors and Sony go up and down completely randomly.
Pair Corralation between Johnson Outdoors and Sony
If you would invest (100.00) in Sony Group on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Sony Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Johnson Outdoors vs. Sony Group
Performance |
| Timeline |
| Johnson Outdoors |
| Sony Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Johnson Outdoors and Sony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Outdoors and Sony
The main advantage of trading using opposite Johnson Outdoors and Sony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Outdoors position performs unexpectedly, Sony 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 Sony will offset losses from the drop in Sony's long position.| Johnson Outdoors vs. Cedar Fair LP | Johnson Outdoors vs. Six Flags Entertainment | Johnson Outdoors vs. Leatt Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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