Correlation Between Johnson Outdoors and SPY
Can any of the company-specific risk be diversified away by investing in both Johnson Outdoors and SPY 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 SPY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Outdoors and SPY Inc, you can compare the effects of market volatilities on Johnson Outdoors and SPY 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 SPY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Outdoors and SPY.
Diversification Opportunities for Johnson Outdoors and SPY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Johnson and SPY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Outdoors and SPY Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPY Inc 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 SPY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPY Inc has no effect on the direction of Johnson Outdoors i.e., Johnson Outdoors and SPY go up and down completely randomly.
Pair Corralation between Johnson Outdoors and SPY
If you would invest (100.00) in SPY Inc on January 26, 2024 and sell it today you would earn a total of 100.00 from holding SPY Inc 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. SPY Inc
Performance |
| Timeline |
| Johnson Outdoors |
| SPY Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Johnson Outdoors and SPY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Outdoors and SPY
The main advantage of trading using opposite Johnson Outdoors and SPY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Outdoors position performs unexpectedly, SPY 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 SPY will offset losses from the drop in SPY's long position.| Johnson Outdoors vs. First Business Financial | Johnson Outdoors vs. Flexsteel Industries | Johnson Outdoors vs. Superior Uniform Group | Johnson Outdoors vs. Eastern Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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