Correlation Between MONEYSUPERMARKET and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both MONEYSUPERMARKET 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 MONEYSUPERMARKET 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 MONEYSUPERMARKET and JJ SNACK FOODS, you can compare the effects of market volatilities on MONEYSUPERMARKET 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 MONEYSUPERMARKET with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of MONEYSUPERMARKET and J+J SNACK.
Diversification Opportunities for MONEYSUPERMARKET and J+J SNACK
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MONEYSUPERMARKET and J+J is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding MONEYSUPERMARKET 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 MONEYSUPERMARKET 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 MONEYSUPERMARKET 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 MONEYSUPERMARKET i.e., MONEYSUPERMARKET and J+J SNACK go up and down completely randomly.
Pair Corralation between MONEYSUPERMARKET and J+J SNACK
Assuming the 90 days trading horizon MONEYSUPERMARKET is expected to generate 1.47 times more return on investment than J+J SNACK. However, MONEYSUPERMARKET is 1.47 times more volatile than JJ SNACK FOODS. It trades about 0.02 of its potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.01 per unit of risk. If you would invest 203.00 in MONEYSUPERMARKET on August 25, 2024 and sell it today you would earn a total of 27.00 from holding MONEYSUPERMARKET or generate 13.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
MONEYSUPERMARKET vs. JJ SNACK FOODS
Performance |
| Timeline |
| MONEYSUPERMARKET |
| JJ SNACK FOODS |
MONEYSUPERMARKET and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MONEYSUPERMARKET and J+J SNACK
The main advantage of trading using opposite MONEYSUPERMARKET and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MONEYSUPERMARKET 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.| MONEYSUPERMARKET vs. Apple Inc | MONEYSUPERMARKET vs. Apple Inc | MONEYSUPERMARKET vs. Apple Inc | MONEYSUPERMARKET vs. Apple Inc |
| J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. NMI Holdings | J+J SNACK vs. Origin Agritech | J+J SNACK vs. SIVERS SEMICONDUCTORS AB |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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