Correlation Between Acadian Timber and Jamieson Wellness

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Acadian Timber and Jamieson Wellness 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 Acadian Timber and Jamieson Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acadian Timber Corp and Jamieson Wellness, you can compare the effects of market volatilities on Acadian Timber and Jamieson Wellness 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 Acadian Timber with a short position of Jamieson Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadian Timber and Jamieson Wellness.

Diversification Opportunities for Acadian Timber and Jamieson Wellness

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Acadian and Jamieson is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Acadian Timber Corp and Jamieson Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jamieson Wellness and Acadian Timber 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 Acadian Timber Corp are associated (or correlated) with Jamieson Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jamieson Wellness has no effect on the direction of Acadian Timber i.e., Acadian Timber and Jamieson Wellness go up and down completely randomly.

Pair Corralation between Acadian Timber and Jamieson Wellness

Assuming the 90 days trading horizon Acadian Timber Corp is expected to under-perform the Jamieson Wellness. But the stock apears to be less risky and, when comparing its historical volatility, Acadian Timber Corp is 1.72 times less risky than Jamieson Wellness. The stock trades about -0.07 of its potential returns per unit of risk. The Jamieson Wellness is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,429  in Jamieson Wellness on October 26, 2024 and sell it today you would earn a total of  57.00  from holding Jamieson Wellness or generate 1.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Acadian Timber Corp  vs.  Jamieson Wellness

 Performance 
       Timeline  
Acadian Timber Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Acadian Timber Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Acadian Timber is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Jamieson Wellness 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Jamieson Wellness are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Jamieson Wellness is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Acadian Timber and Jamieson Wellness Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Acadian Timber and Jamieson Wellness

The main advantage of trading using opposite Acadian Timber and Jamieson Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadian Timber position performs unexpectedly, Jamieson Wellness 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 Jamieson Wellness will offset losses from the drop in Jamieson Wellness' long position.
The idea behind Acadian Timber Corp and Jamieson Wellness 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.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios