Correlation Between JJ SNACK and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both JJ SNACK and Austevoll Seafood 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 JJ SNACK and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JJ SNACK FOODS and Austevoll Seafood ASA, you can compare the effects of market volatilities on JJ SNACK and Austevoll Seafood 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 JJ SNACK with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJ SNACK and Austevoll Seafood.
Diversification Opportunities for JJ SNACK and Austevoll Seafood
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JJ1 and Austevoll is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA and JJ SNACK 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 JJ SNACK FOODS are associated (or correlated) with Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of JJ SNACK i.e., JJ SNACK and Austevoll Seafood go up and down completely randomly.
Pair Corralation between JJ SNACK and Austevoll Seafood
Assuming the 90 days trading horizon JJ SNACK is expected to generate 20.12 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, JJ SNACK FOODS is 4.88 times less risky than Austevoll Seafood. It trades about 0.02 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Austevoll Seafood ASA on September 7, 2024 and sell it today you would earn a total of 585.00 from holding Austevoll Seafood ASA or generate 219.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
JJ SNACK FOODS vs. Austevoll Seafood ASA
Performance |
Timeline |
JJ SNACK FOODS |
Austevoll Seafood ASA |
JJ SNACK and Austevoll Seafood Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JJ SNACK and Austevoll Seafood
The main advantage of trading using opposite JJ SNACK and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJ SNACK position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.JJ SNACK vs. EAGLE MATERIALS | JJ SNACK vs. CITIC Telecom International | JJ SNACK vs. Chunghwa Telecom Co | JJ SNACK vs. NEWELL RUBBERMAID |
Austevoll Seafood vs. Tyson Foods | Austevoll Seafood vs. Charoen Pokphand Foods | Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |