Correlation Between JJ SNACK and HF FOODS
Can any of the company-specific risk be diversified away by investing in both JJ SNACK and HF 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 JJ SNACK and HF FOODS 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 HF FOODS GRP, you can compare the effects of market volatilities on JJ SNACK and HF 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 JJ SNACK with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJ SNACK and HF FOODS.
Diversification Opportunities for JJ SNACK and HF FOODS
Very poor diversification
The 3 months correlation between JJ1 and 3GX is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and HF FOODS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF FOODS GRP and JJ 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 HF FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF FOODS GRP has no effect on the direction of JJ SNACK i.e., JJ SNACK and HF FOODS go up and down completely randomly.
Pair Corralation between JJ SNACK and HF FOODS
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.84 times more return on investment than HF FOODS. However, JJ SNACK FOODS is 1.19 times less risky than HF FOODS. It trades about -0.13 of its potential returns per unit of risk. HF FOODS GRP is currently generating about -0.41 per unit of risk. If you would invest 14,400 in JJ SNACK FOODS on December 11, 2024 and sell it today you would lose (1,900) from holding JJ SNACK FOODS or give up 13.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. HF FOODS GRP
Performance |
| Timeline |
| JJ SNACK FOODS |
| HF FOODS GRP |
JJ SNACK and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JJ SNACK and HF FOODS
The main advantage of trading using opposite JJ SNACK and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJ SNACK position performs unexpectedly, HF 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 HF FOODS will offset losses from the drop in HF FOODS's long position.| JJ SNACK vs. GOME Retail Holdings | JJ SNACK vs. Globe Trade Centre | JJ SNACK vs. CosmoSteel Holdings Limited | JJ SNACK vs. Indutrade AB |
| HF FOODS vs. TYSNES SPAREBANK NK | HF FOODS vs. BANKINTER ADR 2007 | HF FOODS vs. CREDIT AGRICOLE | HF FOODS vs. YATRA ONLINE DL 0001 |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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