Correlation Between Andersons and John B
Can any of the company-specific risk be diversified away by investing in both Andersons and John B 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 Andersons and John B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Andersons and John B Sanfilippo, you can compare the effects of market volatilities on Andersons and John B 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 Andersons with a short position of John B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andersons and John B.
Diversification Opportunities for Andersons and John B
Significant diversification
The 3 months correlation between Andersons and John is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Andersons and John B Sanfilippo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John B Sanfilippo and Andersons 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 The Andersons are associated (or correlated) with John B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John B Sanfilippo has no effect on the direction of Andersons i.e., Andersons and John B go up and down completely randomly.
Pair Corralation between Andersons and John B
Given the investment horizon of 90 days The Andersons is expected to generate 0.71 times more return on investment than John B. However, The Andersons is 1.41 times less risky than John B. It trades about 0.01 of its potential returns per unit of risk. John B Sanfilippo is currently generating about -0.28 per unit of risk. If you would invest 4,077 in The Andersons on November 5, 2024 and sell it today you would lose (2.00) from holding The Andersons or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Andersons vs. John B Sanfilippo
Performance |
| Timeline |
| Andersons |
| John B Sanfilippo |
Andersons and John B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andersons and John B
The main advantage of trading using opposite Andersons and John B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andersons position performs unexpectedly, John B 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 John B will offset losses from the drop in John B's long position.| Andersons vs. Calavo Growers | Andersons vs. SpartanNash Co | Andersons vs. The Chefs Warehouse | Andersons vs. Hf Foods Group |
| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. J J Snack |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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