Correlation Between Jamieson Wellness and Ritchie Bros

Can any of the company-specific risk be diversified away by investing in both Jamieson Wellness and Ritchie Bros 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 Jamieson Wellness and Ritchie Bros into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jamieson Wellness and Ritchie Bros Auctioneers, you can compare the effects of market volatilities on Jamieson Wellness and Ritchie Bros 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 Jamieson Wellness with a short position of Ritchie Bros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamieson Wellness and Ritchie Bros.

Diversification Opportunities for Jamieson Wellness and Ritchie Bros

0.63

Correlation Coefficient

Jamieson Wellness  Ritchie Bros

Poor diversification

The 3 months correlation between Jamieson and Ritchie is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jamieson Wellness and Ritchie Bros Auctioneers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ritchie Bros Auctioneers and Jamieson Wellness 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 Jamieson Wellness are associated (or correlated) with Ritchie Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ritchie Bros Auctioneers has no effect on the direction of Jamieson Wellness i.e., Jamieson Wellness and Ritchie Bros go up and down completely randomly.

Pair Corralation between Jamieson Wellness and Ritchie Bros

Assuming the 90 days trading horizon Jamieson Wellness is expected to generate 1.3 times more return on investment than Ritchie Bros. However, Jamieson Wellness is 1.3 times more volatile than Ritchie Bros Auctioneers. It trades about 0.11 of its potential returns per unit of risk. Ritchie Bros Auctioneers is currently generating about 0.11 per unit of risk. If you would invest  3,124  in Jamieson Wellness on April 24, 2025 and sell it today you would earn a total of  291.00  from holding Jamieson Wellness or generate 9.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Jamieson Wellness  vs.  Ritchie Bros Auctioneers

Jamieson Wellness

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jamieson Wellness are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Jamieson Wellness may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ritchie Bros Auctioneers

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ritchie Bros Auctioneers are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Ritchie Bros may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Jamieson Wellness and Ritchie Bros

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

The idea behind Jamieson Wellness and Ritchie Bros Auctioneers 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.