Correlation Between JJill and Expand Energy

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

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

Diversification Opportunities for JJill and Expand Energy

-0.22

Correlation Coefficient

JJill  Expand Energy

Very good diversification

The 3 months correlation between JJill and Expand is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and JJill 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 JJill Inc are associated (or correlated) with Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of JJill i.e., JJill and Expand Energy go up and down completely randomly.

Pair Corralation between JJill and Expand Energy

Given the investment horizon of 90 days JJill Inc is expected to under-perform the Expand Energy. In addition to that, JJill is 1.5 times more volatile than Expand Energy. It trades about -0.12 of its total potential returns per unit of risk. Expand Energy is currently generating about 0.02 per unit of volatility. If you would invest  9,784  in Expand Energy on December 2, 2024 and sell it today you would earn a total of  104.00  from holding Expand Energy or generate 1.06% return on investment over 90 days.

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

JJill Inc  vs.  Expand Energy

JJill Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days JJill Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Expand Energy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Expand Energy are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Expand Energy is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with JJill and Expand Energy

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

The idea behind JJill Inc and Expand Energy 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.