Correlation Between USANA Health and J J

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

By analyzing existing cross correlation between USANA Health Sciences and J J Snack, you can compare the effects of market volatilities on USANA Health 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 USANA Health with a short position of J J. Check out your portfolio center. Please also check ongoing floating volatility patterns of USANA Health and J J.

Diversification Opportunities for USANA Health and J J

0.74

Correlation Coefficient

USANA Health  J J

Poor diversification

The 3 months correlation between USANA and JJSF is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding USANA Health Sciences 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 USANA Health 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 USANA Health Sciences 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 USANA Health i.e., USANA Health and J J go up and down completely randomly.

Pair Corralation between USANA Health and J J

Given the investment horizon of 90 days USANA Health Sciences is expected to under-perform the J J. In addition to that, USANA Health is 1.62 times more volatile than J J Snack. It trades about -0.12 of its total potential returns per unit of risk. J J Snack is currently generating about -0.15 per unit of volatility. If you would invest  15,528  in J J Snack on December 27, 2024 and sell it today you would lose (2,456) from holding J J Snack or give up 15.82% of portfolio value over 90 days.

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

USANA Health Sciences  vs.  J J Snack

USANA Health Sciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days USANA Health Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

J J Snack

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with USANA Health and J J

The main advantage of trading using opposite USANA Health and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USANA Health 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 USANA Health Sciences 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.