Correlation Between Fathom Holdings and J W

Can any of the company-specific risk be diversified away by investing in both Fathom Holdings and J W 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 Fathom Holdings and J W into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fathom Holdings and J W Mays, you can compare the effects of market volatilities on Fathom Holdings and J W 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 Fathom Holdings with a short position of J W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fathom Holdings and J W.

Diversification Opportunities for Fathom Holdings and J W

-0.1

Correlation Coefficient

Fathom Holdings  J W

Good diversification

The 3 months correlation between Fathom and MAYS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Fathom Holdings and J W Mays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J W Mays and Fathom Holdings 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 Fathom Holdings are associated (or correlated) with J W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J W Mays has no effect on the direction of Fathom Holdings i.e., Fathom Holdings and J W go up and down completely randomly.

Pair Corralation between Fathom Holdings and J W

Given the investment horizon of 90 days Fathom Holdings is expected to generate 282.46 times less return on investment than J W. But when comparing it to its historical volatility, Fathom Holdings is 31.29 times less risky than J W. It trades about 0.02 of its potential returns per unit of risk. J W Mays is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  4,250  in J W Mays on September 4, 2024 and sell it today you would lose (32.00) from holding J W Mays or give up 0.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	30.77%
Values	Daily Returns

Fathom Holdings  vs.  J W Mays

Fathom Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fathom Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

J W Mays

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days J W Mays has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Fathom Holdings and J W

The main advantage of trading using opposite Fathom Holdings and J W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fathom Holdings position performs unexpectedly, J W 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 J W will offset losses from the drop in J W's long position.

The idea behind Fathom Holdings and J W Mays pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.