Correlation Between J+J SNACK and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and CompuGroup Medical 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 CompuGroup Medical 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 CompuGroup Medical SE, you can compare the effects of market volatilities on J+J SNACK and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and CompuGroup Medical.
Diversification Opportunities for J+J SNACK and CompuGroup Medical
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between J+J and CompuGroup is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of J+J SNACK i.e., J+J SNACK and CompuGroup Medical go up and down completely randomly.
Pair Corralation between J+J SNACK and CompuGroup Medical
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.26 times more return on investment than CompuGroup Medical. However, JJ SNACK FOODS is 3.87 times less risky than CompuGroup Medical. It trades about 0.03 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.0 per unit of risk. If you would invest 15,444 in JJ SNACK FOODS on September 24, 2024 and sell it today you would earn a total of 556.00 from holding JJ SNACK FOODS or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. CompuGroup Medical SE
Performance |
| Timeline |
| JJ SNACK FOODS |
| CompuGroup Medical |
J+J SNACK and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and CompuGroup Medical
The main advantage of trading using opposite J+J SNACK and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| J+J SNACK vs. Mowi ASA | J+J SNACK vs. LEROY SEAFOOD GRUNSPADR | J+J SNACK vs. Lery Seafood Group | J+J SNACK vs. Nisshin Seifun Group |
| CompuGroup Medical vs. Veeva Systems | CompuGroup Medical vs. 10X GENOMICS DL | CompuGroup Medical vs. Healthequity | CompuGroup Medical vs. Teladoc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |