Correlation Between J+J SNACK and Fielmann Aktiengesellscha

Can any of the company-specific risk be diversified away by investing in both J+J SNACK and Fielmann Aktiengesellscha 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 Fielmann Aktiengesellscha 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 Fielmann Aktiengesellschaft, you can compare the effects of market volatilities on J+J SNACK and Fielmann Aktiengesellscha 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 Fielmann Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of J+J SNACK and Fielmann Aktiengesellscha.

Diversification Opportunities for J+J SNACK and Fielmann Aktiengesellscha

-0.84

Correlation Coefficient

J+J SNACK  Fielmann Aktiengesellscha

Pay attention - limited upside

The 3 months correlation between J+J and Fielmann is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding JJ SNACK FOODS and Fielmann Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fielmann Aktiengesellscha 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 Fielmann Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fielmann Aktiengesellscha has no effect on the direction of J+J SNACK i.e., J+J SNACK and Fielmann Aktiengesellscha go up and down completely randomly.

Pair Corralation between J+J SNACK and Fielmann Aktiengesellscha

Assuming the 90 days trading horizon JJ SNACK FOODS is expected to under-perform the Fielmann Aktiengesellscha. But the stock apears to be less risky and, when comparing its historical volatility, JJ SNACK FOODS is 1.78 times less risky than Fielmann Aktiengesellscha. The stock trades about -0.06 of its potential returns per unit of risk. The Fielmann Aktiengesellschaft is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  3,990  in Fielmann Aktiengesellschaft on September 24, 2024 and sell it today you would earn a total of  125.00  from holding Fielmann Aktiengesellschaft or generate 3.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

JJ SNACK FOODS  vs.  Fielmann Aktiengesellschaft

JJ SNACK FOODS

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JJ SNACK FOODS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, J+J SNACK is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Fielmann Aktiengesellscha

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fielmann Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with J+J SNACK and Fielmann Aktiengesellscha

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

The idea behind JJ SNACK FOODS and Fielmann Aktiengesellschaft 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..