Correlation Between STEVEN MADDEN and J J

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

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

Diversification Opportunities for STEVEN MADDEN and J J

0.13

Correlation Coefficient

STEVEN MADDEN  J J

Average diversification

The 3 months correlation between STEVEN and JJSF is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding STEVEN MADDEN 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 STEVEN MADDEN 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 STEVEN MADDEN 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 STEVEN MADDEN i.e., STEVEN MADDEN and J J go up and down completely randomly.

Pair Corralation between STEVEN MADDEN and J J

Considering the 90-day investment horizon STEVEN MADDEN is expected to generate 1.39 times more return on investment than J J. However, STEVEN MADDEN is 1.39 times more volatile than J J Snack. It trades about 0.01 of its potential returns per unit of risk. J J Snack is currently generating about -0.06 per unit of risk. If you would invest  11,142  in STEVEN MADDEN on May 10, 2025 and sell it today you would lose (47.00) from holding STEVEN MADDEN or give up 0.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

STEVEN MADDEN  vs.  J J Snack

STEVEN MADDEN

Risk-Adjusted Performance

Weakest

Over the last 90 days STEVEN MADDEN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward-looking indicators, STEVEN MADDEN is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

J J Snack

Risk-Adjusted Performance

Weakest

Over the last 90 days J J Snack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal 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 STEVEN MADDEN and J J

The main advantage of trading using opposite STEVEN MADDEN and J J positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STEVEN MADDEN 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 STEVEN MADDEN 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.