Correlation Between J+J SNACK and AGF Management
Can any of the company-specific risk be diversified away by investing in both J+J SNACK and AGF Management 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 SNACK and AGF Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JJ SNACK FOODS and AGF Management Limited, you can compare the effects of market volatilities on J+J SNACK and AGF Management 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 SNACK with a short position of AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and AGF Management.
Diversification Opportunities for J+J SNACK and AGF Management
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between J+J and AGF is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management and J+J SNACK 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 JJ SNACK FOODS are associated (or correlated) with AGF Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Management has no effect on the direction of J+J SNACK i.e., J+J SNACK and AGF Management go up and down completely randomly.
Pair Corralation between J+J SNACK and AGF Management
Assuming the 90 days trading horizon JJ SNACK FOODS is expected to under-perform the AGF Management. But the stock apears to be less risky and, when comparing its historical volatility, JJ SNACK FOODS is 1.09 times less risky than AGF Management. The stock trades about -0.17 of its potential returns per unit of risk. The AGF Management Limited is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 693.00 in AGF Management Limited on December 26, 2024 and sell it today you would lose (43.00) from holding AGF Management Limited or give up 6.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
JJ SNACK FOODS vs. AGF Management Limited
Performance |
Timeline |
JJ SNACK FOODS |
AGF Management |
J+J SNACK and AGF Management Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with J+J SNACK and AGF Management
The main advantage of trading using opposite J+J SNACK and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J+J SNACK position performs unexpectedly, AGF Management 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 AGF Management will offset losses from the drop in AGF Management's long position.J+J SNACK vs. H2O Retailing | J+J SNACK vs. CARSALESCOM | J+J SNACK vs. Canon Marketing Japan | J+J SNACK vs. SIDETRADE EO 1 |
AGF Management vs. Yunnan Water Investment | AGF Management vs. PennantPark Investment | AGF Management vs. ALLFUNDS GROUP EO 0025 | AGF Management vs. Perseus Mining Limited |
Check out your portfolio center.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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |