Correlation Between NIPPON MEAT and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both NIPPON MEAT 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 NIPPON MEAT 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 NIPPON MEAT PACKERS and JJ SNACK FOODS, you can compare the effects of market volatilities on NIPPON MEAT 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 NIPPON MEAT with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIPPON MEAT and J+J SNACK.
Diversification Opportunities for NIPPON MEAT and J+J SNACK
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPPON and J+J is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding NIPPON MEAT PACKERS 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 NIPPON MEAT 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 NIPPON MEAT PACKERS 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 NIPPON MEAT i.e., NIPPON MEAT and J+J SNACK go up and down completely randomly.
Pair Corralation between NIPPON MEAT and J+J SNACK
Assuming the 90 days trading horizon NIPPON MEAT is expected to generate 2.23 times less return on investment than J+J SNACK. In addition to that, NIPPON MEAT is 1.98 times more volatile than JJ SNACK FOODS. It trades about 0.06 of its total potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.26 per unit of volatility. If you would invest 15,200 in JJ SNACK FOODS on September 2, 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 |
NIPPON MEAT PACKERS vs. JJ SNACK FOODS
Performance |
| Timeline |
| NIPPON MEAT PACKERS |
| JJ SNACK FOODS |
NIPPON MEAT and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIPPON MEAT and J+J SNACK
The main advantage of trading using opposite NIPPON MEAT and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIPPON MEAT 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.| NIPPON MEAT vs. SIVERS SEMICONDUCTORS AB | NIPPON MEAT vs. Darden Restaurants | NIPPON MEAT vs. Reliance Steel Aluminum | NIPPON MEAT vs. Q2M Managementberatung AG |
| J+J SNACK vs. Danone SA | J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. NMI Holdings | J+J SNACK vs. Origin Agritech |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |