Correlation Between John B and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both John B and Stryve Foods 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 Stryve Foods 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 Stryve Foods, you can compare the effects of market volatilities on John B and Stryve Foods 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 Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of John B and Stryve Foods.
Diversification Opportunities for John B and Stryve Foods
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Stryve is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding John B Sanfilippo and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods 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 Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of John B i.e., John B and Stryve Foods go up and down completely randomly.
Pair Corralation between John B and Stryve Foods
Given the investment horizon of 90 days John B Sanfilippo is expected to under-perform the Stryve Foods. But the stock apears to be less risky and, when comparing its historical volatility, John B Sanfilippo is 1.83 times less risky than Stryve Foods. The stock trades about -0.16 of its potential returns per unit of risk. The Stryve Foods is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 94.00 in Stryve Foods on August 29, 2024 and sell it today you would lose (4.00) from holding Stryve Foods or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John B Sanfilippo vs. Stryve Foods
Performance |
| Timeline |
| John B Sanfilippo |
| Stryve Foods |
John B and Stryve Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John B and Stryve Foods
The main advantage of trading using opposite John B and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John B position performs unexpectedly, Stryve Foods 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 Stryve Foods will offset losses from the drop in Stryve Foods' long position.| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. Seneca Foods Corp |
| Stryve Foods vs. Bit Origin | Stryve Foods vs. Laird Superfood | Stryve Foods vs. Planet Green Holdings | Stryve Foods vs. Better Choice |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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