Correlation Between Johnson Johnson and Seahawk Gold
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and Seahawk Gold 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 Seahawk Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and Seahawk Gold Corp, you can compare the effects of market volatilities on Johnson Johnson and Seahawk Gold 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 Seahawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Seahawk Gold.
Diversification Opportunities for Johnson Johnson and Seahawk Gold
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Johnson and Seahawk is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and Seahawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seahawk Gold Corp 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 are associated (or correlated) with Seahawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seahawk Gold Corp has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and Seahawk Gold go up and down completely randomly.
Pair Corralation between Johnson Johnson and Seahawk Gold
Considering the 90-day investment horizon Johnson Johnson is expected to generate 74.48 times less return on investment than Seahawk Gold. But when comparing it to its historical volatility, Johnson Johnson is 141.51 times less risky than Seahawk Gold. It trades about 0.24 of its potential returns per unit of risk. Seahawk Gold Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2.10 in Seahawk Gold Corp on September 7, 2025 and sell it today you would earn a total of 25.90 from holding Seahawk Gold Corp or generate 1233.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johnson Johnson vs. Seahawk Gold Corp
Performance |
| Timeline |
| Johnson Johnson |
| Seahawk Gold Corp |
Johnson Johnson and Seahawk Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Seahawk Gold
The main advantage of trading using opposite Johnson Johnson and Seahawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, Seahawk Gold 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 Seahawk Gold will offset losses from the drop in Seahawk Gold's long position.| Johnson Johnson vs. National Healthcare Logistics | Johnson Johnson vs. Viemed Healthcare | Johnson Johnson vs. Education Management Corp | Johnson Johnson vs. Ares Management LP |
| Seahawk Gold vs. Orion Office Reit | Seahawk Gold vs. Penn National Gaming | Seahawk Gold vs. Franklin Wireless Corp | Seahawk Gold vs. GameStop Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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