Correlation Between J J and MamaMancinis Holdings

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

By analyzing existing cross correlation between J J Snack and MamaMancinis Holdings, you can compare the effects of market volatilities on J J and MamaMancinis Holdings 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 J J with a short position of MamaMancinis Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of J J and MamaMancinis Holdings.

Diversification Opportunities for J J and MamaMancinis Holdings

0.39

Correlation Coefficient

J J  MamaMancinis Holdings

Weak diversification

The 3 months correlation between JJSF and MamaMancinis is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding J J Snack and MamaMancinis Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MamaMancinis Holdings and J J 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 J J Snack are associated (or correlated) with MamaMancinis Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MamaMancinis Holdings has no effect on the direction of J J i.e., J J and MamaMancinis Holdings go up and down completely randomly.

Pair Corralation between J J and MamaMancinis Holdings

If you would invest  16,630  in J J Snack on September 14, 2024 and sell it today you would earn a total of  170.00  from holding J J Snack or generate 1.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

J J Snack  vs.  MamaMancinis Holdings

J J Snack

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in J J Snack are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, J J is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

MamaMancinis Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MamaMancinis Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, MamaMancinis Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with J J and MamaMancinis Holdings

The main advantage of trading using opposite J J and MamaMancinis Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J J position performs unexpectedly, MamaMancinis Holdings 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 MamaMancinis Holdings will offset losses from the drop in MamaMancinis Holdings' long position.

The idea behind J J Snack and MamaMancinis Holdings 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.