Correlation Between J+J SNACK and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and ATRYS HEALTH 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 ATRYS HEALTH 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 ATRYS HEALTH SA, you can compare the effects of market volatilities on J+J SNACK and ATRYS HEALTH 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 ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and ATRYS HEALTH.
Diversification Opportunities for J+J SNACK and ATRYS HEALTH
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between J+J and ATRYS is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA 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 ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of J+J SNACK i.e., J+J SNACK and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between J+J SNACK and ATRYS HEALTH
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.47 times more return on investment than ATRYS HEALTH. However, JJ SNACK FOODS is 2.13 times less risky than ATRYS HEALTH. It trades about 0.12 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.02 per unit of risk. If you would invest 15,200 in JJ SNACK FOODS on August 28, 2024 and sell it today you would earn a total of 800.00 from holding JJ SNACK FOODS or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. ATRYS HEALTH SA
Performance |
| Timeline |
| JJ SNACK FOODS |
| ATRYS HEALTH SA |
J+J SNACK and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and ATRYS HEALTH
The main advantage of trading using opposite J+J SNACK and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, ATRYS HEALTH 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.| J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. NMI Holdings | J+J SNACK vs. Origin Agritech | J+J SNACK vs. SIVERS SEMICONDUCTORS AB |
| ATRYS HEALTH vs. Pentair plc | ATRYS HEALTH vs. SYSTEMAIR AB | ATRYS HEALTH vs. Auto Trader Group | ATRYS HEALTH vs. CANON MARKETING JP |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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