Correlation Between FUYO GENERAL and JJ SNACK
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and JJ 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 FUYO GENERAL and JJ SNACK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and JJ SNACK FOODS, you can compare the effects of market volatilities on FUYO GENERAL and JJ 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 FUYO GENERAL with a short position of JJ SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and JJ SNACK.
Diversification Opportunities for FUYO GENERAL and JJ SNACK
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between FUYO and JJ1 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE 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 FUYO GENERAL 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 FUYO GENERAL LEASE are associated (or correlated) with JJ 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 FUYO GENERAL i.e., FUYO GENERAL and JJ SNACK go up and down completely randomly.
Pair Corralation between FUYO GENERAL and JJ SNACK
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 1.02 times more return on investment than JJ SNACK. However, FUYO GENERAL is 1.02 times more volatile than JJ SNACK FOODS. It trades about 0.27 of its potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.2 per unit of risk. If you would invest 6,450 in FUYO GENERAL LEASE on August 30, 2024 and sell it today you would earn a total of 550.00 from holding FUYO GENERAL LEASE or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. JJ SNACK FOODS
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| JJ SNACK FOODS |
FUYO GENERAL and JJ SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and JJ SNACK
The main advantage of trading using opposite FUYO GENERAL and JJ SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, JJ 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 JJ SNACK will offset losses from the drop in JJ SNACK's long position.| FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. SIVERS SEMICONDUCTORS AB | FUYO GENERAL vs. Talanx AG | FUYO GENERAL vs. 2G ENERGY |
| JJ SNACK vs. SCANDMEDICAL SOLDK 040 | JJ SNACK vs. Clearside Biomedical | JJ SNACK vs. Caltagirone SpA | JJ SNACK vs. Tianjin Capital Environmental |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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