Correlation Between Joint Corp and Viking Holdings

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

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

Diversification Opportunities for Joint Corp and Viking Holdings

0.66

Correlation Coefficient

Joint Corp  Viking Holdings

Poor diversification

The 3 months correlation between Joint and Viking is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and Viking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Holdings and Joint Corp 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 The Joint Corp are associated (or correlated) with Viking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Holdings has no effect on the direction of Joint Corp i.e., Joint Corp and Viking Holdings go up and down completely randomly.

Pair Corralation between Joint Corp and Viking Holdings

Given the investment horizon of 90 days The Joint Corp is expected to generate 0.95 times more return on investment than Viking Holdings. However, The Joint Corp is 1.06 times less risky than Viking Holdings. It trades about 0.15 of its potential returns per unit of risk. Viking Holdings is currently generating about -0.08 per unit of risk. If you would invest  1,027  in The Joint Corp on December 20, 2024 and sell it today you would earn a total of  216.00  from holding The Joint Corp or generate 21.03% return on investment over 90 days.

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

The Joint Corp  vs.  Viking Holdings

Joint Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Joint Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Joint Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Viking Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Viking Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Joint Corp and Viking Holdings

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

The idea behind The Joint Corp and Viking 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.