Correlation Between BranchOut Food and John B

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

By analyzing existing cross correlation between BranchOut Food Common and John B Sanfilippo, you can compare the effects of market volatilities on BranchOut Food and John B 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 BranchOut Food with a short position of John B. Check out your portfolio center. Please also check ongoing floating volatility patterns of BranchOut Food and John B.

Diversification Opportunities for BranchOut Food and John B

0.56

Correlation Coefficient

BranchOut Food  John B

Very weak diversification

The 3 months correlation between BranchOut and John is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding BranchOut Food Common and John B Sanfilippo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John B Sanfilippo and BranchOut Food 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 BranchOut Food Common are associated (or correlated) with John B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John B Sanfilippo has no effect on the direction of BranchOut Food i.e., BranchOut Food and John B go up and down completely randomly.

Pair Corralation between BranchOut Food and John B

Considering the 90-day investment horizon BranchOut Food Common is expected to under-perform the John B. In addition to that, BranchOut Food is 2.02 times more volatile than John B Sanfilippo. It trades about -0.17 of its total potential returns per unit of risk. John B Sanfilippo is currently generating about -0.07 per unit of volatility. If you would invest  6,552  in John B Sanfilippo on July 20, 2025 and sell it today you would lose (436.00) from holding John B Sanfilippo or give up 6.65% of portfolio value over 90 days.

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

BranchOut Food Common  vs.  John B Sanfilippo

BranchOut Food Common

Risk-Adjusted Performance

Weakest

Over the last 90 days BranchOut Food Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

John B Sanfilippo

Risk-Adjusted Performance

Weakest

Over the last 90 days John B Sanfilippo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, John B is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BranchOut Food and John B

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

The idea behind BranchOut Food Common and John B Sanfilippo 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.