Correlation Between Lands End and Johnson Johnson

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

Diversification Opportunities for Lands End and Johnson Johnson

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between Lands and Johnson is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lands End and Johnson Johnson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Johnson and Lands End 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 Lands End are associated (or correlated) with Johnson Johnson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Johnson has no effect on the direction of Lands End i.e., Lands End and Johnson Johnson go up and down completely randomly.

Pair Corralation between Lands End and Johnson Johnson

Allowing for the 90-day total investment horizon Lands End is expected to under-perform the Johnson Johnson. In addition to that, Lands End is 3.85 times more volatile than Johnson Johnson. It trades about -0.09 of its total potential returns per unit of risk. Johnson Johnson is currently generating about 0.0 per unit of volatility. If you would invest  16,847  in Johnson Johnson on June 27, 2022 and sell it today you would lose (175.00)  from holding Johnson Johnson or give up 1.04% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Lands End  vs.  Johnson Johnson

 Performance (%) 
       Timeline  
Lands End 
Lands Performance
0 of 100
Over the last 90 days Lands End has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in October 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Lands Price Channel

Johnson Johnson 
Johnson Performance
0 of 100
Over the last 90 days Johnson Johnson has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Johnson Price Channel

Lands End and Johnson Johnson Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lands End and Johnson Johnson

The main advantage of trading using opposite Lands End and Johnson Johnson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lands End position performs unexpectedly, Johnson Johnson 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 Johnson Johnson will offset losses from the drop in Johnson Johnson's long position.
Lands End vs. Burberry
Lands End vs. Hermes Intl SA
Lands End vs. Signet Jewelers
Lands End vs. Christian Dior SE
The idea behind Lands End and Johnson Johnson 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.
Johnson Johnson vs. Sigma Lithium 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go