Correlation Between Cal Maine and J J

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

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

Diversification Opportunities for Cal Maine and J J

-0.02

Correlation Coefficient

Cal Maine  J J

Good diversification

The 3 months correlation between Cal and JJSF is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods 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 Cal Maine 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 Cal Maine Foods 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 Cal Maine i.e., Cal Maine and J J go up and down completely randomly.

Pair Corralation between Cal Maine and J J

Given the investment horizon of 90 days Cal Maine Foods is expected to generate 1.67 times more return on investment than J J. However, Cal Maine is 1.67 times more volatile than J J Snack. It trades about 0.11 of its potential returns per unit of risk. J J Snack is currently generating about 0.03 per unit of risk. If you would invest  8,875  in Cal Maine Foods on May 8, 2025 and sell it today you would earn a total of  1,628  from holding Cal Maine Foods or generate 18.34% return on investment over 90 days.

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

Cal Maine Foods  vs.  J J Snack

Cal Maine Foods

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cal Maine Foods are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile essential indicators, Cal Maine displayed solid returns over the last few months and may actually be approaching a breakup point.

J J Snack

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in J J Snack are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, J J is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cal Maine and J J

The main advantage of trading using opposite Cal Maine and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal Maine 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 Cal Maine Foods 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.