Correlation Between Clorox and J J

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

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

Diversification Opportunities for Clorox and J J

0.37

Correlation Coefficient

Clorox  J J

Weak diversification

The 3 months correlation between Clorox and JJSF is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Clorox 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 Clorox 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 The Clorox 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 Clorox i.e., Clorox and J J go up and down completely randomly.

Pair Corralation between Clorox and J J

Considering the 90-day investment horizon The Clorox is expected to generate 0.76 times more return on investment than J J. However, The Clorox is 1.31 times less risky than J J. It trades about -0.02 of its potential returns per unit of risk. J J Snack is currently generating about -0.17 per unit of risk. If you would invest  12,292  in The Clorox on July 15, 2025 and sell it today you would lose (278.00) from holding The Clorox or give up 2.26% of portfolio value over 90 days.

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

The Clorox  vs.  J J Snack

Clorox

Risk-Adjusted Performance

Weakest

Over the last 90 days The Clorox has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Clorox is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

J J Snack

Risk-Adjusted Performance

Weakest

Over the last 90 days J J Snack 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.

Pair Trading with Clorox and J J

The main advantage of trading using opposite Clorox and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clorox 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 The Clorox 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.