Correlation Between JJill and 037833EC0

Can any of the company-specific risk be diversified away by investing in both JJill and 037833EC0 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 037833EC0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JJill Inc and AAPL 12 08 FEB 28, you can compare the effects of market volatilities on JJill and 037833EC0 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 037833EC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and 037833EC0.

Diversification Opportunities for JJill and 037833EC0

-0.32

Correlation Coefficient

JJill  037833EC0

Very good diversification

The 3 months correlation between JJill and 037833EC0 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and AAPL 12 08 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPL 12 08 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 037833EC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPL 12 08 has no effect on the direction of JJill i.e., JJill and 037833EC0 go up and down completely randomly.

Pair Corralation between JJill and 037833EC0

Given the investment horizon of 90 days JJill Inc is expected to generate 9.67 times more return on investment than 037833EC0. However, JJill is 9.67 times more volatile than AAPL 12 08 FEB 28. It trades about 0.12 of its potential returns per unit of risk. AAPL 12 08 FEB 28 is currently generating about 0.0 per unit of risk. If you would invest  2,403  in JJill Inc on October 7, 2024 and sell it today you would earn a total of  416.00  from holding JJill Inc or generate 17.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

JJill Inc  vs.  AAPL 12 08 FEB 28

JJill Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JJill Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, JJill disclosed solid returns over the last few months and may actually be approaching a breakup point.

AAPL 12 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AAPL 12 08 FEB 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 037833EC0 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JJill and 037833EC0

The main advantage of trading using opposite JJill and 037833EC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJill position performs unexpectedly, 037833EC0 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 037833EC0 will offset losses from the drop in 037833EC0's long position.

The idea behind JJill Inc and AAPL 12 08 FEB 28 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.