Correlation Between Laird Superfood and J J

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

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

Diversification Opportunities for Laird Superfood and J J

0.1

Correlation Coefficient

Laird Superfood  J J

Average diversification

The 3 months correlation between Laird and JJSF is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Laird Superfood and J J Snack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J J Snack and Laird Superfood 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 Laird Superfood are associated (or correlated) with J J. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J J Snack has no effect on the direction of Laird Superfood i.e., Laird Superfood and J J go up and down completely randomly.

Pair Corralation between Laird Superfood and J J

Considering the 90-day investment horizon Laird Superfood is expected to generate 4.62 times more return on investment than J J. However, Laird Superfood is 4.62 times more volatile than J J Snack. It trades about 0.14 of its potential returns per unit of risk. J J Snack is currently generating about -0.07 per unit of risk. If you would invest  493.00  in Laird Superfood on September 26, 2024 and sell it today you would earn a total of  286.00  from holding Laird Superfood or generate 58.01% return on investment over 90 days.

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

Laird Superfood  vs.  J J Snack

Laird Superfood

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Laird Superfood are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Laird Superfood reported solid returns over the last few months and may actually be approaching a breakup point.

J J Snack

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days J J Snack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Laird Superfood and J J

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

The idea behind Laird Superfood and J J Snack 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.