Correlation Between OFG Bancorp and J J

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

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

Diversification Opportunities for OFG Bancorp and J J

0.6

Correlation Coefficient

OFG Bancorp  J J

Poor diversification

The 3 months correlation between OFG and JJSF is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding OFG Bancorp 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 OFG Bancorp 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 OFG Bancorp 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 OFG Bancorp i.e., OFG Bancorp and J J go up and down completely randomly.

Pair Corralation between OFG Bancorp and J J

Considering the 90-day investment horizon OFG Bancorp is expected to generate 0.81 times more return on investment than J J. However, OFG Bancorp is 1.23 times less risky than J J. It trades about 0.1 of its potential returns per unit of risk. J J Snack is currently generating about 0.04 per unit of risk. If you would invest  4,090  in OFG Bancorp on May 28, 2025 and sell it today you would earn a total of  385.00  from holding OFG Bancorp or generate 9.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

OFG Bancorp  vs.  J J Snack

OFG Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in OFG Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, OFG Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 OFG Bancorp and J J

The main advantage of trading using opposite OFG Bancorp and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFG Bancorp 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 OFG Bancorp 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.