Correlation Between QUEEN S and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both QUEEN S 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 QUEEN S 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 QUEEN S ROAD and JJ SNACK FOODS, you can compare the effects of market volatilities on QUEEN S 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 QUEEN S with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUEEN S and J+J SNACK.
Diversification Opportunities for QUEEN S and J+J SNACK
Weak diversification
The 3 months correlation between QUEEN and J+J is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding QUEEN S ROAD 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 QUEEN S 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 QUEEN S ROAD 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 QUEEN S i.e., QUEEN S and J+J SNACK go up and down completely randomly.
Pair Corralation between QUEEN S and J+J SNACK
Assuming the 90 days horizon QUEEN S ROAD is expected to under-perform the J+J SNACK. In addition to that, QUEEN S is 2.36 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 0.09 per unit of volatility. If you would invest 12,772 in JJ SNACK FOODS on September 3, 2024 and sell it today you would earn a total of 3,528 from holding JJ SNACK FOODS or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QUEEN S ROAD vs. JJ SNACK FOODS
Performance |
| Timeline |
| QUEEN S ROAD |
| JJ SNACK FOODS |
QUEEN S and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QUEEN S and J+J SNACK
The main advantage of trading using opposite QUEEN S and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUEEN S 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.| QUEEN S vs. Reliance Steel Aluminum | QUEEN S vs. EAT WELL INVESTMENT | QUEEN S vs. RELIANCE STEEL AL | QUEEN S vs. SLR Investment Corp |
| J+J SNACK vs. GOLD ROAD RES | J+J SNACK vs. CosmoSteel Holdings Limited | J+J SNACK vs. Caltagirone SpA | J+J SNACK vs. TEXAS ROADHOUSE |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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