Correlation Between J J and Alexanders
Can any of the company-specific risk be diversified away by investing in both J J and Alexanders 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 J J and Alexanders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J J Snack and Alexanders, you can compare the effects of market volatilities on J J and Alexanders 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 J J with a short position of Alexanders. Check out your portfolio center. Please also check ongoing floating volatility patterns of J J and Alexanders.
Diversification Opportunities for J J and Alexanders
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JJSF and Alexanders is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding J J Snack and Alexanders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexanders and J J 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 J J Snack are associated (or correlated) with Alexanders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexanders has no effect on the direction of J J i.e., J J and Alexanders go up and down completely randomly.
Pair Corralation between J J and Alexanders
Given the investment horizon of 90 days J J Snack is expected to under-perform the Alexanders. In addition to that, J J is 1.7 times more volatile than Alexanders. It trades about -0.04 of its total potential returns per unit of risk. Alexanders is currently generating about 0.3 per unit of volatility. If you would invest 20,265 in Alexanders on April 28, 2025 and sell it today you would earn a total of 5,613 from holding Alexanders or generate 27.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
J J Snack vs. Alexanders
Performance |
Timeline |
J J Snack |
Alexanders |
J J and Alexanders Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with J J and Alexanders
The main advantage of trading using opposite J J and Alexanders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J J position performs unexpectedly, Alexanders 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 Alexanders will offset losses from the drop in Alexanders' long position.The idea behind J J Snack and Alexanders 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.Alexanders vs. Acadia Realty Trust | Alexanders vs. Saul Centers | Alexanders vs. Alexander Baldwin Holdings | Alexanders vs. Rithm Property Trust |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |