Correlation Between ATRYS HEALTH and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH 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 ATRYS HEALTH 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 ATRYS HEALTH SA and JJ SNACK FOODS, you can compare the effects of market volatilities on ATRYS HEALTH 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 ATRYS HEALTH with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and J+J SNACK.
Diversification Opportunities for ATRYS HEALTH and J+J SNACK
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and J+J is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA 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 ATRYS HEALTH 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 ATRYS HEALTH SA 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 ATRYS HEALTH i.e., ATRYS HEALTH and J+J SNACK go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and J+J SNACK
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the J+J SNACK. In addition to that, ATRYS HEALTH is 1.91 times more volatile than JJ SNACK FOODS. It trades about -0.05 of its total potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.02 per unit of volatility. If you would invest 14,703 in JJ SNACK FOODS on August 28, 2024 and sell it today you would earn a total of 1,297 from holding JJ SNACK FOODS or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. JJ SNACK FOODS
Performance |
| Timeline |
| ATRYS HEALTH SA |
| JJ SNACK FOODS |
ATRYS HEALTH and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and J+J SNACK
The main advantage of trading using opposite ATRYS HEALTH and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH 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.| ATRYS HEALTH vs. Pentair plc | ATRYS HEALTH vs. SYSTEMAIR AB | ATRYS HEALTH vs. Auto Trader Group | ATRYS HEALTH vs. CANON MARKETING JP |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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