Correlation Between J+J SNACK and Ryanair Holdings
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By analyzing existing cross correlation between JJ SNACK FOODS and Ryanair Holdings plc, you can compare the effects of market volatilities on J+J SNACK and Ryanair Holdings 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 Ryanair Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and Ryanair Holdings.
Diversification Opportunities for J+J SNACK and Ryanair Holdings
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between J+J and Ryanair is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and Ryanair Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryanair Holdings plc 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 Ryanair Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryanair Holdings plc has no effect on the direction of J+J SNACK i.e., J+J SNACK and Ryanair Holdings go up and down completely randomly.
Pair Corralation between J+J SNACK and Ryanair Holdings
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.75 times more return on investment than Ryanair Holdings. However, JJ SNACK FOODS is 1.32 times less risky than Ryanair Holdings. It trades about 0.26 of its potential returns per unit of risk. Ryanair Holdings plc is currently generating about 0.18 per unit of risk. If you would invest 15,200 in JJ SNACK FOODS on September 1, 2024 and sell it today you would earn a total of 1,100 from holding JJ SNACK FOODS or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. Ryanair Holdings plc
Performance |
| Timeline |
| JJ SNACK FOODS |
| Ryanair Holdings plc |
J+J SNACK and Ryanair Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and Ryanair Holdings
The main advantage of trading using opposite J+J SNACK and Ryanair Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, Ryanair Holdings 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 Ryanair Holdings will offset losses from the drop in Ryanair Holdings' long position.| J+J SNACK vs. GigaMedia | J+J SNACK vs. Safety Insurance Group | J+J SNACK vs. FUTURE GAMING GRP | J+J SNACK vs. Zurich Insurance Group |
| Ryanair Holdings vs. Southwest Airlines Co | Ryanair Holdings vs. Superior Plus Corp | Ryanair Holdings vs. NMI Holdings | Ryanair Holdings vs. Origin Agritech |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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