Correlation Between J+J SNACK and SBI Insurance
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and SBI Insurance 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 SBI Insurance 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 SBI Insurance Group, you can compare the effects of market volatilities on J+J SNACK and SBI Insurance 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 SBI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and SBI Insurance.
Diversification Opportunities for J+J SNACK and SBI Insurance
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between J+J and SBI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and SBI Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Insurance Group 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 SBI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Insurance Group has no effect on the direction of J+J SNACK i.e., J+J SNACK and SBI Insurance go up and down completely randomly.
Pair Corralation between J+J SNACK and SBI Insurance
Assuming the 90 days trading horizon J+J SNACK is expected to generate 1.15 times less return on investment than SBI Insurance. But when comparing it to its historical volatility, JJ SNACK FOODS is 1.03 times less risky than SBI Insurance. It trades about 0.2 of its potential returns per unit of risk. SBI Insurance Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 565.00 in SBI Insurance Group on August 31, 2024 and sell it today you would earn a total of 40.00 from holding SBI Insurance Group or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
JJ SNACK FOODS vs. SBI Insurance Group
Performance |
| Timeline |
| JJ SNACK FOODS |
| SBI Insurance Group |
J+J SNACK and SBI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and SBI Insurance
The main advantage of trading using opposite J+J SNACK and SBI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, SBI Insurance 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 SBI Insurance will offset losses from the drop in SBI Insurance's long position.| J+J SNACK vs. Danone SA | J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. NMI Holdings | J+J SNACK vs. Origin Agritech |
| SBI Insurance vs. SALESFORCE INC CDR | SBI Insurance vs. Lamar Advertising | SBI Insurance vs. UET United Electronic | SBI Insurance vs. Electronic Arts |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |