Correlation Between Townsquare Media and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both Townsquare Media 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 Townsquare Media 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 Townsquare Media and JJ SNACK FOODS, you can compare the effects of market volatilities on Townsquare Media 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 Townsquare Media with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Townsquare Media and J+J SNACK.
Diversification Opportunities for Townsquare Media and J+J SNACK
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Townsquare and J+J is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Townsquare Media 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 Townsquare Media 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 Townsquare Media 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 Townsquare Media i.e., Townsquare Media and J+J SNACK go up and down completely randomly.
Pair Corralation between Townsquare Media and J+J SNACK
Assuming the 90 days horizon Townsquare Media is expected to generate 2.78 times more return on investment than J+J SNACK. However, Townsquare Media is 2.78 times more volatile than JJ SNACK FOODS. It trades about 0.01 of its potential returns per unit of risk. JJ SNACK FOODS is currently generating about -0.58 per unit of risk. If you would invest 920.00 in Townsquare Media on October 12, 2024 and sell it today you would lose (5.00) from holding Townsquare Media or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Townsquare Media vs. JJ SNACK FOODS
Performance |
| Timeline |
| Townsquare Media |
| JJ SNACK FOODS |
Townsquare Media and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Townsquare Media and J+J SNACK
The main advantage of trading using opposite Townsquare Media and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Townsquare Media 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.| Townsquare Media vs. PACIFIC ONLINE | Townsquare Media vs. NH HOTEL GROUP | Townsquare Media vs. HYATT HOTELS A | Townsquare Media vs. DALATA HOTEL |
| J+J SNACK vs. Townsquare Media | J+J SNACK vs. Commonwealth Bank of | J+J SNACK vs. SUN LIFE FINANCIAL | J+J SNACK vs. CanSino Biologics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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