Correlation Between J+J SNACK and Astral Foods
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and Astral 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 J+J SNACK and Astral 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 Astral Foods Limited, you can compare the effects of market volatilities on J+J SNACK and Astral 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 J+J SNACK with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and Astral Foods.
Diversification Opportunities for J+J SNACK and Astral Foods
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between J+J and Astral is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited 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 Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of J+J SNACK i.e., J+J SNACK and Astral Foods go up and down completely randomly.
Pair Corralation between J+J SNACK and Astral Foods
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.69 times more return on investment than Astral Foods. However, JJ SNACK FOODS is 1.45 times less risky than Astral Foods. It trades about 0.08 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.06 per unit of risk. If you would invest 15,021 in JJ SNACK FOODS on August 25, 2024 and sell it today you would earn a total of 779.00 from holding JJ SNACK FOODS or generate 5.19% 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. Astral Foods Limited
Performance |
| Timeline |
| JJ SNACK FOODS |
| Astral Foods Limited |
J+J SNACK and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and Astral Foods
The main advantage of trading using opposite J+J SNACK and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, Astral 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 Astral Foods will offset losses from the drop in Astral Foods' 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 |
| Astral Foods vs. Charoen Pokphand Foods | Astral Foods vs. Superior Plus Corp | Astral Foods vs. NMI Holdings | Astral Foods vs. Origin Agritech |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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