Correlation Between John B and Complete Fin

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

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

Diversification Opportunities for John B and Complete Fin

-0.09

Correlation Coefficient

John B  Complete Fin

Good diversification

The 3 months correlation between John and Complete is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding John B Sanfilippo and Complete Fin Solu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Complete Fin Solu and John B 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 John B Sanfilippo are associated (or correlated) with Complete Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Complete Fin Solu has no effect on the direction of John B i.e., John B and Complete Fin go up and down completely randomly.

Pair Corralation between John B and Complete Fin

Given the investment horizon of 90 days John B Sanfilippo is expected to under-perform the Complete Fin. But the stock apears to be less risky and, when comparing its historical volatility, John B Sanfilippo is 11.27 times less risky than Complete Fin. The stock trades about -0.12 of its potential returns per unit of risk. The Complete Fin Solu is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  10.00  in Complete Fin Solu on July 23, 2025 and sell it today you would earn a total of  0.00  from holding Complete Fin Solu or generate 0.0% return on investment over 90 days.

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

John B Sanfilippo  vs.  Complete Fin Solu

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Complete Fin Solu

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Complete Fin Solu are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Complete Fin unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with John B and Complete Fin

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

The idea behind John B Sanfilippo and Complete Fin Solu 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.