Correlation Between Journey Medical and BG Foods
Can any of the company-specific risk be diversified away by investing in both Journey Medical and BG Foods 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 Journey Medical and BG Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Journey Medical Corp and BG Foods, you can compare the effects of market volatilities on Journey Medical and BG Foods 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 Journey Medical with a short position of BG Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Journey Medical and BG Foods.
Diversification Opportunities for Journey Medical and BG Foods
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Journey and BGS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Journey Medical Corp and BG Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BG Foods and Journey Medical 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 Journey Medical Corp are associated (or correlated) with BG Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BG Foods has no effect on the direction of Journey Medical i.e., Journey Medical and BG Foods go up and down completely randomly.
Pair Corralation between Journey Medical and BG Foods
Given the investment horizon of 90 days Journey Medical Corp is expected to generate 7.39 times more return on investment than BG Foods. However, Journey Medical is 7.39 times more volatile than BG Foods. It trades about 0.01 of its potential returns per unit of risk. BG Foods is currently generating about -0.08 per unit of risk. If you would invest 382.00 in Journey Medical Corp on January 21, 2024 and sell it today you would lose (34.00) from holding Journey Medical Corp or give up 8.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Journey Medical Corp vs. BG Foods
Performance |
| Timeline |
| Journey Medical Corp |
| BG Foods |
Journey Medical and BG Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Journey Medical and BG Foods
The main advantage of trading using opposite Journey Medical and BG Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Journey Medical position performs unexpectedly, BG Foods 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 BG Foods will offset losses from the drop in BG Foods' long position.| Journey Medical vs. Evoke Pharma | Journey Medical vs. Avadel Pharmaceuticals PLC | Journey Medical vs. Aquestive Therapeutics | Journey Medical vs. Cresco Labs |
| BG Foods vs. Green Globe International | BG Foods vs. Greenlane Holdings | BG Foods vs. 22nd Century Group | BG Foods vs. 1606 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |