Correlation Between JJ SNACK and Shionogi
Can any of the company-specific risk be diversified away by investing in both JJ SNACK and Shionogi 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 JJ SNACK and Shionogi 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 Shionogi Co, you can compare the effects of market volatilities on JJ SNACK and Shionogi 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 JJ SNACK with a short position of Shionogi. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJ SNACK and Shionogi.
Diversification Opportunities for JJ SNACK and Shionogi
Excellent diversification
The 3 months correlation between JJ1 and Shionogi is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and Shionogi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shionogi and JJ 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 Shionogi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shionogi has no effect on the direction of JJ SNACK i.e., JJ SNACK and Shionogi go up and down completely randomly.
Pair Corralation between JJ SNACK and Shionogi
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to generate 0.69 times more return on investment than Shionogi. However, JJ SNACK FOODS is 1.44 times less risky than Shionogi. It trades about 0.02 of its potential returns per unit of risk. Shionogi Co is currently generating about -0.02 per unit of risk. If you would invest 14,511 in JJ SNACK FOODS on August 30, 2024 and sell it today you would earn a total of 1,789 from holding JJ SNACK FOODS or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJ SNACK FOODS vs. Shionogi Co
Performance |
| Timeline |
| JJ SNACK FOODS |
| Shionogi |
JJ SNACK and Shionogi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JJ SNACK and Shionogi
The main advantage of trading using opposite JJ SNACK and Shionogi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJ SNACK position performs unexpectedly, Shionogi 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 Shionogi will offset losses from the drop in Shionogi's long position.| JJ SNACK vs. Iridium Communications | JJ SNACK vs. Hemisphere Energy Corp | JJ SNACK vs. SBA Communications Corp | JJ SNACK vs. Perseus Mining Limited |
| Shionogi vs. Superior Plus Corp | Shionogi vs. NMI Holdings | Shionogi vs. SIVERS SEMICONDUCTORS AB | Shionogi vs. Talanx AG |
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 Stocks Directory module to find actively traded stocks across global markets.
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