Correlation Between Glucose Health and John B

Can any of the company-specific risk be diversified away by investing in both Glucose Health 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 Glucose Health and John B into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Glucose Health and John B Sanfilippo, you can compare the effects of market volatilities on Glucose Health 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 Glucose Health with a short position of John B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glucose Health and John B.

Diversification Opportunities for Glucose Health and John B

0.5

Correlation Coefficient

Glucose Health  John B

Very weak diversification

The 3 months correlation between Glucose and John is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Glucose Health 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 Glucose Health 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 Glucose Health 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 Glucose Health i.e., Glucose Health and John B go up and down completely randomly.

Pair Corralation between Glucose Health and John B

Given the investment horizon of 90 days Glucose Health is expected to generate 9.0 times more return on investment than John B. However, Glucose Health is 9.0 times more volatile than John B Sanfilippo. It trades about 0.06 of its potential returns per unit of risk. John B Sanfilippo is currently generating about 0.0 per unit of risk. If you would invest  18.00  in Glucose Health on September 16, 2024 and sell it today you would lose (2.00) from holding Glucose Health or give up 11.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Glucose Health  vs.  John B Sanfilippo

Glucose Health

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Glucose Health are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Glucose Health exhibited solid returns over the last few months and may actually be approaching a breakup point.

John B Sanfilippo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John B Sanfilippo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, John B is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Glucose Health and John B

The main advantage of trading using opposite Glucose Health and John B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glucose Health 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.

The idea behind Glucose Health and John B Sanfilippo pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..