Correlation Between TROPHY GAMES and J+J SNACK

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

By analyzing existing cross correlation between TROPHY GAMES DEV and JJ SNACK FOODS, you can compare the effects of market volatilities on TROPHY GAMES and J+J SNACK 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 TROPHY GAMES with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and J+J SNACK.

Diversification Opportunities for TROPHY GAMES and J+J SNACK

-0.5

Correlation Coefficient

TROPHY GAMES  J+J SNACK

Very good diversification

The 3 months correlation between TROPHY and J+J is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and JJ SNACK FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJ SNACK FOODS and TROPHY GAMES 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 TROPHY GAMES DEV are associated (or correlated) with J+J SNACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJ SNACK FOODS has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and J+J SNACK go up and down completely randomly.

Pair Corralation between TROPHY GAMES and J+J SNACK

Assuming the 90 days horizon TROPHY GAMES DEV is expected to generate 1.34 times more return on investment than J+J SNACK. However, TROPHY GAMES is 1.34 times more volatile than JJ SNACK FOODS. It trades about 0.09 of its potential returns per unit of risk. JJ SNACK FOODS is currently generating about -0.17 per unit of risk. If you would invest  78.00  in TROPHY GAMES DEV on December 29, 2024 and sell it today you would earn a total of  11.00  from holding TROPHY GAMES DEV or generate 14.1% return on investment over 90 days.

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

TROPHY GAMES DEV  vs.  JJ SNACK FOODS

TROPHY GAMES DEV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TROPHY GAMES DEV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TROPHY GAMES reported solid returns over the last few months and may actually be approaching a breakup point.

JJ SNACK FOODS

Risk-Adjusted Performance

Very Weak

Over the last 90 days JJ SNACK FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with TROPHY GAMES and J+J SNACK

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

The idea behind TROPHY GAMES DEV and JJ SNACK FOODS 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .