Correlation Between Journey Medical and First Community

Can any of the company-specific risk be diversified away by investing in both Journey Medical and First Community 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 First Community 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 First Community, you can compare the effects of market volatilities on Journey Medical and First Community 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 First Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Journey Medical and First Community.

Diversification Opportunities for Journey Medical and First Community

0.0

Correlation Coefficient

Journey Medical  First Community

Pay attention - limited upside

The 3 months correlation between Journey and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Journey Medical Corp and First Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Community 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 First Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Community has no effect on the direction of Journey Medical i.e., Journey Medical and First Community go up and down completely randomly.

Pair Corralation between Journey Medical and First Community

Given the investment horizon of 90 days Journey Medical Corp is expected to generate 2.67 times more return on investment than First Community. However, Journey Medical is 2.67 times more volatile than First Community. It trades about 0.06 of its potential returns per unit of risk. First Community is currently generating about 0.08 per unit of risk. If you would invest  368.00  in Journey Medical Corp on July 31, 2025 and sell it today you would earn a total of  445.00  from holding Journey Medical Corp or generate 120.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	45.03%
Values	Daily Returns

Journey Medical Corp  vs.  First Community

Journey Medical Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Journey Medical Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Journey Medical displayed solid returns over the last few months and may actually be approaching a breakup point.

First Community

Risk-Adjusted Performance

Solid

Over the last 90 days First Community has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, First Community is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Journey Medical and First Community

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

The idea behind Journey Medical Corp and First Community 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.