Correlation Between Johnson Johnson and Lightspeed Commerce
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and Lightspeed Commerce 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 Johnson and Lightspeed Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson CDR and Lightspeed Commerce, you can compare the effects of market volatilities on Johnson Johnson and Lightspeed Commerce 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 Johnson with a short position of Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Lightspeed Commerce.
Diversification Opportunities for Johnson Johnson and Lightspeed Commerce
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Johnson and Lightspeed is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson CDR and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce and Johnson Johnson 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 Johnson CDR are associated (or correlated) with Lightspeed Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightspeed Commerce has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and Lightspeed Commerce go up and down completely randomly.
Pair Corralation between Johnson Johnson and Lightspeed Commerce
Assuming the 90 days trading horizon Johnson Johnson CDR is expected to generate 0.27 times more return on investment than Lightspeed Commerce. However, Johnson Johnson CDR is 3.71 times less risky than Lightspeed Commerce. It trades about 0.31 of its potential returns per unit of risk. Lightspeed Commerce is currently generating about -0.03 per unit of risk. If you would invest 2,278 in Johnson Johnson CDR on August 28, 2025 and sell it today you would earn a total of 409.00 from holding Johnson Johnson CDR or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johnson Johnson CDR vs. Lightspeed Commerce
Performance |
| Timeline |
| Johnson Johnson CDR |
| Lightspeed Commerce |
Johnson Johnson and Lightspeed Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Lightspeed Commerce
The main advantage of trading using opposite Johnson Johnson and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, Lightspeed Commerce 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 Lightspeed Commerce will offset losses from the drop in Lightspeed Commerce's long position.| Johnson Johnson vs. Theralase Technologies | Johnson Johnson vs. WonderFi Technologies | Johnson Johnson vs. Glacier Media | Johnson Johnson vs. BLUERUSH Media Group |
| Lightspeed Commerce vs. NorthWest Healthcare Properties | Lightspeed Commerce vs. Highwood Asset Management | Lightspeed Commerce vs. Carrier Connect Data | Lightspeed Commerce vs. AGF Management Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |