Correlation Between Fomento Economico and J J

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

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

Diversification Opportunities for Fomento Economico and J J

-0.64

Correlation Coefficient

Fomento Economico  J J

Excellent diversification

The 3 months correlation between Fomento and JJSF is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Economico Mexicano 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 Fomento Economico 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 Fomento Economico Mexicano 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 Fomento Economico i.e., Fomento Economico and J J go up and down completely randomly.

Pair Corralation between Fomento Economico and J J

Considering the 90-day investment horizon Fomento Economico Mexicano is expected to under-perform the J J. But the stock apears to be less risky and, when comparing its historical volatility, Fomento Economico Mexicano is 1.49 times less risky than J J. The stock trades about -0.11 of its potential returns per unit of risk. The J J Snack is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  11,573  in J J Snack on March 18, 2025 and sell it today you would lose (175.00) from holding J J Snack or give up 1.51% of portfolio value over 90 days.

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

Fomento Economico Mexicano  vs.  J J Snack

Fomento Economico

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fomento Economico Mexicano are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal primary indicators, Fomento Economico may actually be approaching a critical reversion point that can send shares even higher in July 2025.

J J Snack

Risk-Adjusted Performance

Very Weak

Over the last 90 days J J Snack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Fomento Economico and J J

The main advantage of trading using opposite Fomento Economico and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Economico 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 Fomento Economico Mexicano 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.