Correlation Between Lerøy Seafood and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both Lerøy 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 Lerøy 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 Lerøy 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 Lerøy Seafood with a short position of J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lerøy Seafood and J+J SNACK.
Diversification Opportunities for Lerøy Seafood and J+J SNACK
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lerøy and J+J is 0.33. 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 Lerøy 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 Lerøy Seafood i.e., Lerøy Seafood and J+J SNACK go up and down completely randomly.
Pair Corralation between Lerøy Seafood and J+J SNACK
Assuming the 90 days horizon Lery Seafood Group is expected to under-perform the J+J SNACK. In addition to that, Lerøy Seafood is 3.12 times more volatile than JJ SNACK FOODS. It trades about -0.14 of its total potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.15 per unit of volatility. If you would invest 15,724 in JJ SNACK FOODS on September 22, 2024 and sell it today you would earn a total of 276.00 from holding JJ SNACK FOODS or generate 1.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lery Seafood Group vs. JJ SNACK FOODS
Performance |
Timeline |
Lery Seafood Group |
JJ SNACK FOODS |
Lerøy Seafood and J+J SNACK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lerøy Seafood and J+J SNACK
The main advantage of trading using opposite Lerøy Seafood and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lerøy 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.Lerøy Seafood vs. Mowi ASA | Lerøy Seafood vs. LEROY SEAFOOD GRUNSPADR | Lerøy Seafood vs. Lery Seafood Group | Lerøy Seafood vs. Nisshin Seifun Group |
J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. SIVERS SEMICONDUCTORS AB | J+J SNACK vs. NorAm Drilling AS | J+J SNACK vs. Norsk Hydro ASA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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