Correlation Between COFCO Joycome and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and J+J SNACK 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 COFCO Joycome and J+J SNACK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and JJ SNACK FOODS, you can compare the effects of market volatilities on COFCO Joycome and J+J SNACK 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 COFCO Joycome with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and J+J SNACK.
Diversification Opportunities for COFCO Joycome and J+J SNACK
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COFCO and J+J is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and JJ SNACK FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJ SNACK FOODS and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with J+J SNACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJ SNACK FOODS has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and J+J SNACK go up and down completely randomly.
Pair Corralation between COFCO Joycome and J+J SNACK
Assuming the 90 days horizon COFCO Joycome is expected to generate 5.36 times less return on investment than J+J SNACK. In addition to that, COFCO Joycome is 2.44 times more volatile than JJ SNACK FOODS. It trades about 0.0 of its total potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.03 per unit of volatility. If you would invest 14,992 in JJ SNACK FOODS on September 14, 2024 and sell it today you would earn a total of 1,208 from holding JJ SNACK FOODS or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. JJ SNACK FOODS
Performance |
| Timeline |
| COFCO Joycome Foods |
| JJ SNACK FOODS |
COFCO Joycome and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and J+J SNACK
The main advantage of trading using opposite COFCO Joycome and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, J+J SNACK 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 J+J SNACK will offset losses from the drop in J+J SNACK's long position.| COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. NorAm Drilling AS |
| J+J SNACK vs. Hormel Foods | J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. SIVERS SEMICONDUCTORS AB | J+J SNACK vs. NorAm Drilling AS |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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