Correlation Between Johnson Outdoors and F45 Training

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

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

Diversification Opportunities for Johnson Outdoors and F45 Training

0.0

Correlation Coefficient

Johnson Outdoors  F45 Training

Pay attention - limited upside

The 3 months correlation between Johnson and F45 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Outdoors and F45 Training Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F45 Training Holdings 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 F45 Training. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F45 Training Holdings has no effect on the direction of Johnson Outdoors i.e., Johnson Outdoors and F45 Training go up and down completely randomly.

Pair Corralation between Johnson Outdoors and F45 Training

If you would invest (100.00) in F45 Training Holdings on November 28, 2024 and sell it today you would earn a total of  100.00  from holding F45 Training Holdings 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.  F45 Training Holdings

Johnson Outdoors

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

F45 Training Holdings

Risk-Adjusted Performance

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.

Pair Trading with Johnson Outdoors and F45 Training

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

The idea behind Johnson Outdoors and F45 Training Holdings 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.