Correlation Between Utz Brands and John B
Can any of the company-specific risk be diversified away by investing in both Utz Brands and John B 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 Utz Brands and John B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utz Brands and John B Sanfilippo, you can compare the effects of market volatilities on Utz Brands and John B 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 Utz Brands with a short position of John B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utz Brands and John B.
Diversification Opportunities for Utz Brands and John B
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Utz and John is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Utz Brands and John B Sanfilippo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John B Sanfilippo and Utz Brands 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 Utz Brands are associated (or correlated) with John B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John B Sanfilippo has no effect on the direction of Utz Brands i.e., Utz Brands and John B go up and down completely randomly.
Pair Corralation between Utz Brands and John B
Considering the 90-day investment horizon Utz Brands is expected to generate 1.23 times more return on investment than John B. However, Utz Brands is 1.23 times more volatile than John B Sanfilippo. It trades about -0.01 of its potential returns per unit of risk. John B Sanfilippo is currently generating about -0.01 per unit of risk. If you would invest 1,578 in Utz Brands on November 2, 2024 and sell it today you would lose (247.50) from holding Utz Brands or give up 15.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Utz Brands vs. John B Sanfilippo
Performance |
| Timeline |
| Utz Brands |
| John B Sanfilippo |
Utz Brands and John B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utz Brands and John B
The main advantage of trading using opposite Utz Brands and John B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utz Brands position performs unexpectedly, John B 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 John B will offset losses from the drop in John B's long position.| Utz Brands vs. Post Holdings | Utz Brands vs. J J Snack | Utz Brands vs. The Hain Celestial | Utz Brands vs. Bellring Brands LLC |
| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. J J Snack |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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