Correlation Between Lifeway Foods and J J
Can any of the company-specific risk be diversified away by investing in both Lifeway Foods and J J 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 Lifeway Foods and J J into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifeway Foods and J J Snack, you can compare the effects of market volatilities on Lifeway Foods and J J 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 Lifeway Foods with a short position of J J. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeway Foods and J J.
Diversification Opportunities for Lifeway Foods and J J
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lifeway and JJSF is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lifeway Foods and J J Snack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J J Snack and Lifeway Foods 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 Lifeway Foods are associated (or correlated) with J J. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J J Snack has no effect on the direction of Lifeway Foods i.e., Lifeway Foods and J J go up and down completely randomly.
Pair Corralation between Lifeway Foods and J J
Given the investment horizon of 90 days Lifeway Foods is expected to under-perform the J J. In addition to that, Lifeway Foods is 1.76 times more volatile than J J Snack. It trades about -0.1 of its total potential returns per unit of risk. J J Snack is currently generating about 0.09 per unit of volatility. If you would invest 16,547 in J J Snack on August 27, 2024 and sell it today you would earn a total of 569.00 from holding J J Snack or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifeway Foods vs. J J Snack
Performance |
| Timeline |
| Lifeway Foods |
| J J Snack |
Lifeway Foods and J J Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifeway Foods and J J
The main advantage of trading using opposite Lifeway Foods and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifeway Foods position performs unexpectedly, J J 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 will offset losses from the drop in J J's long position.| Lifeway Foods vs. Bellring Brands LLC | Lifeway Foods vs. Ingredion Incorporated | Lifeway Foods vs. Nomad Foods | Lifeway Foods vs. Post Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |