Correlation Between J+J SNACK and Office Properties
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and Office Properties 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 Office Properties 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 Office Properties Income, you can compare the effects of market volatilities on J+J SNACK and Office Properties 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 Office Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and Office Properties.
Diversification Opportunities for J+J SNACK and Office Properties
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between J+J and Office is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and Office Properties Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Office Properties Income 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 Office Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Office Properties Income has no effect on the direction of J+J SNACK i.e., J+J SNACK and Office Properties go up and down completely randomly.
Pair Corralation between J+J SNACK and Office Properties
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.25 times more return on investment than Office Properties. However, JJ SNACK FOODS is 4.01 times less risky than Office Properties. It trades about 0.01 of its potential returns per unit of risk. Office Properties Income is currently generating about -0.07 per unit of risk. If you would invest 14,991 in JJ SNACK FOODS on August 24, 2024 and sell it today you would earn a total of 809.00 from holding JJ SNACK FOODS or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. Office Properties Income
Performance |
| Timeline |
| JJ SNACK FOODS |
| Office Properties Income |
J+J SNACK and Office Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and Office Properties
The main advantage of trading using opposite J+J SNACK and Office Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, Office Properties 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 Office Properties will offset losses from the drop in Office Properties' 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 |
| Office Properties vs. CDN IMPERIAL BANK | Office Properties vs. Quaker Chemical | Office Properties vs. Sanyo Chemical Industries | Office Properties vs. TIANDE CHEMICAL |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |