Correlation Between J+J SNACK and Robert Half
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and Robert Half 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 Robert Half 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 Robert Half International, you can compare the effects of market volatilities on J+J SNACK and Robert Half 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 Robert Half. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and Robert Half.
Diversification Opportunities for J+J SNACK and Robert Half
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between J+J and Robert is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and Robert Half International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robert Half International 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 Robert Half. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robert Half International has no effect on the direction of J+J SNACK i.e., J+J SNACK and Robert Half go up and down completely randomly.
Pair Corralation between J+J SNACK and Robert Half
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to under-perform the Robert Half. But the stock apears to be less risky and, when comparing its historical volatility, JJ SNACK FOODS is 1.13 times less risky than Robert Half. The stock trades about -0.09 of its potential returns per unit of risk. The Robert Half International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,455 in Robert Half International on December 4, 2024 and sell it today you would earn a total of 145.00 from holding Robert Half International or generate 2.66% 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. Robert Half International
Performance |
| Timeline |
| JJ SNACK FOODS |
| Robert Half International |
J+J SNACK and Robert Half Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and Robert Half
The main advantage of trading using opposite J+J SNACK and Robert Half positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, Robert Half 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 Robert Half will offset losses from the drop in Robert Half's long position.| J+J SNACK vs. GOME Retail Holdings | J+J SNACK vs. BURLINGTON STORES | J+J SNACK vs. MARKET VECTR RETAIL | J+J SNACK vs. RESMINING UNSPADR10 |
| Robert Half vs. China BlueChemical | Robert Half vs. HK Electric Investments | Robert Half vs. Scottish Mortgage Investment | Robert Half vs. SILICON LABORATOR |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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