Correlation Between J+J SNACK and Apple
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on J+J SNACK and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and Apple.
Diversification Opportunities for J+J SNACK and Apple
Very weak diversification
The 3 months correlation between J+J and Apple is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of J+J SNACK i.e., J+J SNACK and Apple go up and down completely randomly.
Pair Corralation between J+J SNACK and Apple
Assuming the 90 days trading horizon J+J SNACK is expected to generate 4.99 times less return on investment than Apple. But when comparing it to its historical volatility, JJ SNACK FOODS is 1.12 times less risky than Apple. It trades about 0.02 of its potential returns per unit of risk. Apple Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,316 in Apple Inc on October 7, 2024 and sell it today you would earn a total of 11,279 from holding Apple Inc or generate 91.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. Apple Inc
Performance |
| Timeline |
| JJ SNACK FOODS |
| Apple Inc |
J+J SNACK and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and Apple
The main advantage of trading using opposite J+J SNACK and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. NMI Holdings | J+J SNACK vs. SIVERS SEMICONDUCTORS AB | J+J SNACK vs. Talanx AG |
| Apple vs. Endeavour Mining PLC | Apple vs. Monument Mining Limited | Apple vs. Ebro Foods SA | Apple vs. Yanzhou Coal Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |