Correlation Between John B and Andersons
Can any of the company-specific risk be diversified away by investing in both John B and Andersons 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 John B and Andersons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John B Sanfilippo and The Andersons, you can compare the effects of market volatilities on John B and Andersons 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 John B with a short position of Andersons. Check out your portfolio center. Please also check ongoing floating volatility patterns of John B and Andersons.
Diversification Opportunities for John B and Andersons
Average diversification
The 3 months correlation between John and Andersons is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding John B Sanfilippo and The Andersons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andersons and John B 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 John B Sanfilippo are associated (or correlated) with Andersons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andersons has no effect on the direction of John B i.e., John B and Andersons go up and down completely randomly.
Pair Corralation between John B and Andersons
Given the investment horizon of 90 days John B Sanfilippo is expected to generate 0.82 times more return on investment than Andersons. However, John B Sanfilippo is 1.22 times less risky than Andersons. It trades about -0.05 of its potential returns per unit of risk. The Andersons is currently generating about -0.08 per unit of risk. If you would invest 10,096 in John B Sanfilippo on October 26, 2024 and sell it today you would lose (1,171) from holding John B Sanfilippo or give up 11.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John B Sanfilippo vs. The Andersons
Performance |
| Timeline |
| John B Sanfilippo |
| Andersons |
John B and Andersons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John B and Andersons
The main advantage of trading using opposite John B and Andersons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John B position performs unexpectedly, Andersons 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 Andersons will offset losses from the drop in Andersons' long position.| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. J J Snack |
| Andersons vs. Calavo Growers | Andersons vs. SpartanNash Co | Andersons vs. The Chefs Warehouse | Andersons vs. Hf Foods Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |