Correlation Between J+J SNACK and ACCSYS TECHPLC
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and ACCSYS TECHPLC 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 ACCSYS TECHPLC 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 ACCSYS TECHPLC EO, you can compare the effects of market volatilities on J+J SNACK and ACCSYS TECHPLC 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 ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and ACCSYS TECHPLC.
Diversification Opportunities for J+J SNACK and ACCSYS TECHPLC
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between J+J and ACCSYS is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO 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 ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of J+J SNACK i.e., J+J SNACK and ACCSYS TECHPLC go up and down completely randomly.
Pair Corralation between J+J SNACK and ACCSYS TECHPLC
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.39 times more return on investment than ACCSYS TECHPLC. However, JJ SNACK FOODS is 2.57 times less risky than ACCSYS TECHPLC. It trades about 0.11 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about -0.09 per unit of risk. If you would invest 15,326 in JJ SNACK FOODS on September 22, 2024 and sell it today you would earn a total of 674.00 from holding JJ SNACK FOODS or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. ACCSYS TECHPLC EO
Performance |
| Timeline |
| JJ SNACK FOODS |
| ACCSYS TECHPLC EO |
J+J SNACK and ACCSYS TECHPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and ACCSYS TECHPLC
The main advantage of trading using opposite J+J SNACK and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, ACCSYS TECHPLC 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 ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.| J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. SIVERS SEMICONDUCTORS AB | J+J SNACK vs. NorAm Drilling AS | J+J SNACK vs. Norsk Hydro ASA |
| ACCSYS TECHPLC vs. VITEC SOFTWARE GROUP | ACCSYS TECHPLC vs. CyberArk Software | ACCSYS TECHPLC vs. GRUPO CARSO A1 | ACCSYS TECHPLC vs. Alfa Financial Software |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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