Correlation Between FEMALE HEALTH and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both FEMALE 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 FEMALE 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 FEMALE HEALTH and JJ SNACK FOODS, you can compare the effects of market volatilities on FEMALE 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 FEMALE HEALTH with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and J+J SNACK.
Diversification Opportunities for FEMALE HEALTH and J+J SNACK
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FEMALE and J+J is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH 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 FEMALE 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 FEMALE HEALTH 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 FEMALE HEALTH i.e., FEMALE HEALTH and J+J SNACK go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and J+J SNACK
Assuming the 90 days trading horizon FEMALE HEALTH is expected to under-perform the J+J SNACK. In addition to that, FEMALE HEALTH is 4.81 times more volatile than JJ SNACK FOODS. It trades about -0.04 of its total potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.03 per unit of volatility. If you would invest 14,319 in JJ SNACK FOODS on September 3, 2024 and sell it today you would earn a total of 1,981 from holding JJ SNACK FOODS or generate 13.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. JJ SNACK FOODS
Performance |
| Timeline |
| FEMALE HEALTH |
| JJ SNACK FOODS |
FEMALE HEALTH and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and J+J SNACK
The main advantage of trading using opposite FEMALE HEALTH and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE 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.| FEMALE HEALTH vs. Universal Display | FEMALE HEALTH vs. SALESFORCE INC CDR | FEMALE HEALTH vs. Entravision Communications | FEMALE HEALTH vs. ULTRA CLEAN HLDGS |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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