Correlation Between J+J SNACK and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and COFCO Joycome 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 J+J SNACK and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JJ SNACK FOODS and COFCO Joycome Foods, you can compare the effects of market volatilities on J+J SNACK and COFCO Joycome 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 J+J SNACK with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and COFCO Joycome.
Diversification Opportunities for J+J SNACK and COFCO Joycome
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between J+J and COFCO is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and J+J SNACK 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 JJ SNACK FOODS are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of J+J SNACK i.e., J+J SNACK and COFCO Joycome go up and down completely randomly.
Pair Corralation between J+J SNACK and COFCO Joycome
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.41 times more return on investment than COFCO Joycome. However, JJ SNACK FOODS is 2.44 times less risky than COFCO Joycome. It trades about 0.03 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about 0.0 per unit of risk. If you would invest 14,992 in JJ SNACK FOODS on September 14, 2024 and sell it today you would earn a total of 1,208 from holding JJ SNACK FOODS or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. COFCO Joycome Foods
Performance |
| Timeline |
| JJ SNACK FOODS |
| COFCO Joycome Foods |
J+J SNACK and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and COFCO Joycome
The main advantage of trading using opposite J+J SNACK and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| J+J SNACK vs. Hormel Foods | J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. SIVERS SEMICONDUCTORS AB | J+J SNACK vs. NorAm Drilling AS |
| COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. NorAm Drilling AS |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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