Correlation Between Austevoll Seafood and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both Austevoll Seafood 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 Austevoll Seafood 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 Austevoll Seafood ASA and JJ SNACK FOODS, you can compare the effects of market volatilities on Austevoll Seafood 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 Austevoll Seafood with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austevoll Seafood and J+J SNACK.
Diversification Opportunities for Austevoll Seafood and J+J SNACK
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Austevoll and J+J is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Austevoll Seafood ASA 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 Austevoll Seafood 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 Austevoll Seafood ASA 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 Austevoll Seafood i.e., Austevoll Seafood and J+J SNACK go up and down completely randomly.
Pair Corralation between Austevoll Seafood and J+J SNACK
Assuming the 90 days horizon Austevoll Seafood ASA is expected to generate 1.7 times more return on investment than J+J SNACK. However, Austevoll Seafood is 1.7 times more volatile than JJ SNACK FOODS. It trades about 0.09 of its potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.12 per unit of risk. If you would invest 807.00 in Austevoll Seafood ASA on August 28, 2024 and sell it today you would earn a total of 48.00 from holding Austevoll Seafood ASA or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austevoll Seafood ASA vs. JJ SNACK FOODS
Performance |
| Timeline |
| Austevoll Seafood ASA |
| JJ SNACK FOODS |
Austevoll Seafood and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austevoll Seafood and J+J SNACK
The main advantage of trading using opposite Austevoll Seafood and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austevoll Seafood 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.| Austevoll Seafood vs. Cleanaway Waste Management | Austevoll Seafood vs. DOCDATA | Austevoll Seafood vs. ULTRA CLEAN HLDGS | Austevoll Seafood vs. Beyond Meat |
| J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. NMI Holdings | J+J SNACK vs. Origin Agritech | J+J SNACK vs. SIVERS SEMICONDUCTORS AB |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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