Correlation Between United Parks and John B

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

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

Diversification Opportunities for United Parks and John B

0.54

Correlation Coefficient

United Parks  John B

Very weak diversification

The 3 months correlation between United and John is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding United Parks Resorts and John B Sanfilippo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John B Sanfilippo and United Parks 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 United Parks Resorts are associated (or correlated) with John B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John B Sanfilippo has no effect on the direction of United Parks i.e., United Parks and John B go up and down completely randomly.

Pair Corralation between United Parks and John B

Given the investment horizon of 90 days United Parks is expected to generate 1.7 times less return on investment than John B. In addition to that, United Parks is 1.22 times more volatile than John B Sanfilippo. It trades about 0.04 of its total potential returns per unit of risk. John B Sanfilippo is currently generating about 0.08 per unit of volatility. If you would invest  5,892  in John B Sanfilippo on May 7, 2025 and sell it today you would earn a total of  491.00  from holding John B Sanfilippo or generate 8.33% return on investment over 90 days.

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

United Parks Resorts  vs.  John B Sanfilippo

United Parks Resorts

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in United Parks Resorts are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward-looking signals, United Parks is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

John B Sanfilippo

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in John B Sanfilippo are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, John B may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with United Parks and John B

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

The idea behind United Parks Resorts and John B Sanfilippo 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.