Correlation Between J+J SNACK and SCANSOURCE
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and SCANSOURCE 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 SCANSOURCE 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 SCANSOURCE, you can compare the effects of market volatilities on J+J SNACK and SCANSOURCE 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 SCANSOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and SCANSOURCE.
Diversification Opportunities for J+J SNACK and SCANSOURCE
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between J+J and SCANSOURCE is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE 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 SCANSOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE has no effect on the direction of J+J SNACK i.e., J+J SNACK and SCANSOURCE go up and down completely randomly.
Pair Corralation between J+J SNACK and SCANSOURCE
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to under-perform the SCANSOURCE. But the stock apears to be less risky and, when comparing its historical volatility, JJ SNACK FOODS is 2.67 times less risky than SCANSOURCE. The stock trades about -0.04 of its potential returns per unit of risk. The SCANSOURCE is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,840 in SCANSOURCE on September 12, 2024 and sell it today you would earn a total of 210.00 from holding SCANSOURCE or generate 4.34% 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. SCANSOURCE
Performance |
| Timeline |
| JJ SNACK FOODS |
| SCANSOURCE |
J+J SNACK and SCANSOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J+J SNACK and SCANSOURCE
The main advantage of trading using opposite J+J SNACK and SCANSOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, SCANSOURCE 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 SCANSOURCE will offset losses from the drop in SCANSOURCE's long position.| J+J SNACK vs. Hormel Foods | J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. SIVERS SEMICONDUCTORS AB | J+J SNACK vs. NorAm Drilling AS |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |