Correlation Between Siit Dynamic and Johnson Enhanced

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

By analyzing existing cross correlation between Siit Dynamic Asset and Johnson Enhanced Return, you can compare the effects of market volatilities on Siit Dynamic and Johnson Enhanced 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 Siit Dynamic with a short position of Johnson Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Dynamic and Johnson Enhanced.

Diversification Opportunities for Siit Dynamic and Johnson Enhanced

0.92

Correlation Coefficient

Siit Dynamic  Johnson Enhanced

Almost no diversification

The 3 months correlation between Siit and Johnson is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Siit Dynamic Asset and Johnson Enhanced Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Enhanced Return and Siit Dynamic 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 Siit Dynamic Asset are associated (or correlated) with Johnson Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Enhanced Return has no effect on the direction of Siit Dynamic i.e., Siit Dynamic and Johnson Enhanced go up and down completely randomly.

Pair Corralation between Siit Dynamic and Johnson Enhanced

Assuming the 90 days horizon Siit Dynamic Asset is expected to generate 1.11 times more return on investment than Johnson Enhanced. However, Siit Dynamic is 1.11 times more volatile than Johnson Enhanced Return. It trades about 0.22 of its potential returns per unit of risk. Johnson Enhanced Return is currently generating about 0.14 per unit of risk. If you would invest  2,245  in Siit Dynamic Asset on September 14, 2024 and sell it today you would earn a total of  238.00  from holding Siit Dynamic Asset or generate 10.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Siit Dynamic Asset  vs.  Johnson Enhanced Return

Siit Dynamic Asset

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Dynamic Asset are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Siit Dynamic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Johnson Enhanced Return

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Johnson Enhanced Return are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Johnson Enhanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Siit Dynamic and Johnson Enhanced

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

The idea behind Siit Dynamic Asset and Johnson Enhanced Return 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 CEOs Directory module to screen CEOs from public companies around the world.