Correlation Between Lery Seafood and J+J SNACK

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

Diversification Opportunities for Lery Seafood and J+J SNACK

0.19

Correlation Coefficient

Lery Seafood  J+J SNACK

Average diversification

The 3 months correlation between Lery and J+J is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group 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 Lery Seafood 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 Lery Seafood Group 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 Lery Seafood i.e., Lery Seafood and J+J SNACK go up and down completely randomly.

Pair Corralation between Lery Seafood and J+J SNACK

Assuming the 90 days trading horizon Lery Seafood Group is expected to generate 1.22 times more return on investment than J+J SNACK. However, Lery Seafood is 1.22 times more volatile than JJ SNACK FOODS. It trades about 0.05 of its potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.02 per unit of risk. If you would invest  4,007  in Lery Seafood Group on September 23, 2024 and sell it today you would earn a total of  857.00  from holding Lery Seafood Group or generate 21.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.54%
Values	Daily Returns

Lery Seafood Group  vs.  JJ SNACK FOODS

Lery Seafood Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lery Seafood Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Lery Seafood is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

JJ SNACK FOODS

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JJ SNACK FOODS are ranked lower than 9 (%) 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.

Pair Trading with Lery Seafood and J+J SNACK

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