Correlation Between F45 Training and Johnson Outdoors

Can any of the company-specific risk be diversified away by investing in both F45 Training and Johnson Outdoors 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 F45 Training and Johnson Outdoors into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between F45 Training Holdings and Johnson Outdoors, you can compare the effects of market volatilities on F45 Training and Johnson Outdoors 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 F45 Training with a short position of Johnson Outdoors. Check out your portfolio center. Please also check ongoing floating volatility patterns of F45 Training and Johnson Outdoors.

Diversification Opportunities for F45 Training and Johnson Outdoors

0.57

Correlation Coefficient

F45 Training  Johnson Outdoors

Very weak diversification

The 3 months correlation between F45 and Johnson is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding F45 Training Holdings and Johnson Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Outdoors and F45 Training 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 F45 Training Holdings are associated (or correlated) with Johnson Outdoors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Outdoors has no effect on the direction of F45 Training i.e., F45 Training and Johnson Outdoors go up and down completely randomly.

Pair Corralation between F45 Training and Johnson Outdoors

If you would invest  57.00  in F45 Training Holdings on August 31, 2024 and sell it today you would earn a total of  0.00  from holding F45 Training Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

F45 Training Holdings  vs.  Johnson Outdoors

F45 Training Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days F45 Training Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, F45 Training is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Johnson Outdoors

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Johnson Outdoors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Johnson Outdoors is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with F45 Training and Johnson Outdoors

The main advantage of trading using opposite F45 Training and Johnson Outdoors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F45 Training position performs unexpectedly, Johnson Outdoors 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 Outdoors will offset losses from the drop in Johnson Outdoors' long position.

The idea behind F45 Training Holdings and Johnson Outdoors 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.