Correlation Between BG Foods and J J

Can any of the company-specific risk be diversified away by investing in both BG 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 BG 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 BG Foods and J J Snack, you can compare the effects of market volatilities on BG 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 BG Foods with a short position of J J. Check out your portfolio center. Please also check ongoing floating volatility patterns of BG Foods and J J.

Diversification Opportunities for BG Foods and J J

-0.13

Correlation Coefficient

BG Foods  J J

Good diversification

The 3 months correlation between BGS and JJSF is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding BG 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 BG 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 BG 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 BG Foods i.e., BG Foods and J J go up and down completely randomly.

Pair Corralation between BG Foods and J J

Considering the 90-day investment horizon BG Foods is expected to under-perform the J J. In addition to that, BG Foods is 2.2 times more volatile than J J Snack. It trades about -0.01 of its total potential returns per unit of risk. J J Snack is currently generating about 0.02 per unit of volatility. If you would invest  14,417  in J J Snack on September 26, 2024 and sell it today you would earn a total of  1,339  from holding J J Snack or generate 9.29% return on investment over 90 days.

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

BG Foods  vs.  J J Snack

BG Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BG 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 technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private 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 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 BG Foods and J J

The main advantage of trading using opposite BG Foods and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG 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 BG 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.