Correlation Between J J and Sharing Services
Can any of the company-specific risk be diversified away by investing in both J J and Sharing Services 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 and Sharing Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J J Snack and Sharing Services Global, you can compare the effects of market volatilities on J J and Sharing Services 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 with a short position of Sharing Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of J J and Sharing Services.
Diversification Opportunities for J J and Sharing Services
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JJSF and Sharing is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding J J Snack and Sharing Services Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharing Services Global and J J 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 J J Snack are associated (or correlated) with Sharing Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharing Services Global has no effect on the direction of J J i.e., J J and Sharing Services go up and down completely randomly.
Pair Corralation between J J and Sharing Services
Given the investment horizon of 90 days J J is expected to generate 22.87 times less return on investment than Sharing Services. But when comparing it to its historical volatility, J J Snack is 6.61 times less risky than Sharing Services. It trades about 0.08 of its potential returns per unit of risk. Sharing Services Global is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Sharing Services Global on August 31, 2024 and sell it today you would earn a total of 17.00 from holding Sharing Services Global or generate 94.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
J J Snack vs. Sharing Services Global
Performance |
| Timeline |
| J J Snack |
| Sharing Services Global |
J J and Sharing Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J J and Sharing Services
The main advantage of trading using opposite J J and Sharing Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J J position performs unexpectedly, Sharing Services 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 Sharing Services will offset losses from the drop in Sharing Services' long position.The idea behind J J Snack and Sharing Services Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sharing Services vs. Seneca Foods Corp | Sharing Services vs. Bridgford Foods | Sharing Services vs. J J Snack | Sharing Services vs. Central Garden Pet |
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.
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