Correlation Between Stryve Foods and J J

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

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

Diversification Opportunities for Stryve Foods and J J

0.22

Correlation Coefficient

Stryve Foods  J J

Modest diversification

The 3 months correlation between Stryve and JJSF is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods 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 Stryve Foods 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 Stryve Foods 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 Stryve Foods i.e., Stryve Foods and J J go up and down completely randomly.

Pair Corralation between Stryve Foods and J J

Given the investment horizon of 90 days Stryve Foods is expected to under-perform the J J. In addition to that, Stryve Foods is 3.97 times more volatile than J J Snack. It trades about -0.23 of its total potential returns per unit of risk. J J Snack is currently generating about -0.08 per unit of volatility. If you would invest  17,006  in J J Snack on September 27, 2024 and sell it today you would lose (1,250) from holding J J Snack or give up 7.35% of portfolio value over 90 days.

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

Stryve Foods  vs.  J J Snack

Stryve Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stryve Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 weak 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 Stryve Foods and J J

The main advantage of trading using opposite Stryve Foods and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryve Foods 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 Stryve Foods 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.