Correlation Between JLT MOBILE and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both JLT MOBILE and J+J SNACK 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 JLT MOBILE and J+J SNACK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLT MOBILE PUTER and JJ SNACK FOODS, you can compare the effects of market volatilities on JLT MOBILE and J+J SNACK 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 JLT MOBILE with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLT MOBILE and J+J SNACK.
Diversification Opportunities for JLT MOBILE and J+J SNACK
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JLT and J+J is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding JLT MOBILE PUTER and JJ SNACK FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJ SNACK FOODS and JLT MOBILE 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 JLT MOBILE PUTER are associated (or correlated) with J+J SNACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJ SNACK FOODS has no effect on the direction of JLT MOBILE i.e., JLT MOBILE and J+J SNACK go up and down completely randomly.
Pair Corralation between JLT MOBILE and J+J SNACK
Assuming the 90 days trading horizon JLT MOBILE PUTER is expected to under-perform the J+J SNACK. In addition to that, JLT MOBILE is 2.32 times more volatile than JJ SNACK FOODS. It trades about -0.12 of its total potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.27 per unit of volatility. If you would invest 15,200 in JJ SNACK FOODS on September 3, 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLT MOBILE PUTER vs. JJ SNACK FOODS
Performance |
| Timeline |
| JLT MOBILE PUTER |
| JJ SNACK FOODS |
JLT MOBILE and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLT MOBILE and J+J SNACK
The main advantage of trading using opposite JLT MOBILE and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLT MOBILE position performs unexpectedly, J+J SNACK 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 J+J SNACK will offset losses from the drop in J+J SNACK's long position.| JLT MOBILE vs. JJ SNACK FOODS | JLT MOBILE vs. THAI BEVERAGE | JLT MOBILE vs. Ebro Foods SA | JLT MOBILE vs. NISSIN FOODS HLDGS |
| J+J SNACK vs. GOLD ROAD RES | J+J SNACK vs. CosmoSteel Holdings Limited | J+J SNACK vs. Caltagirone SpA | J+J SNACK vs. TEXAS ROADHOUSE |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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