Correlation Between J J and Campbell Soup
Can any of the company-specific risk be diversified away by investing in both J J and Campbell Soup 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 and Campbell Soup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J J Snack and Campbell Soup, you can compare the effects of market volatilities on J J and Campbell Soup 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 with a short position of Campbell Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of J J and Campbell Soup.
Diversification Opportunities for J J and Campbell Soup
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JJSF and Campbell is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding J J Snack and Campbell Soup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Soup and J J 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 J J Snack are associated (or correlated) with Campbell Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Soup has no effect on the direction of J J i.e., J J and Campbell Soup go up and down completely randomly.
Pair Corralation between J J and Campbell Soup
Given the investment horizon of 90 days J J Snack is expected to under-perform the Campbell Soup. In addition to that, J J is 1.13 times more volatile than Campbell Soup. It trades about -0.17 of its total potential returns per unit of risk. Campbell Soup is currently generating about 0.03 per unit of volatility. If you would invest 4,281 in Campbell Soup on January 20, 2024 and sell it today you would earn a total of 90.00 from holding Campbell Soup or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
J J Snack vs. Campbell Soup
Performance |
| Timeline |
| J J Snack |
| Campbell Soup |
J J and Campbell Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J J and Campbell Soup
The main advantage of trading using opposite J J and Campbell Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J J position performs unexpectedly, Campbell Soup 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 Campbell Soup will offset losses from the drop in Campbell Soup's long position.| J J vs. Green Globe International | J J vs. Greenlane Holdings | J J vs. 22nd Century Group | J J vs. 1606 Corp |
| Campbell Soup vs. Green Globe International | Campbell Soup vs. Greenlane Holdings | Campbell Soup vs. 22nd Century Group | Campbell Soup vs. 1606 Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |