Correlation Between JJill and NESNVX

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

By analyzing existing cross correlation between JJill Inc and NESNVX 25 14 SEP 41, you can compare the effects of market volatilities on JJill and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and NESNVX.

Diversification Opportunities for JJill and NESNVX

0.1

Correlation Coefficient

JJill  NESNVX

Average diversification

The 3 months correlation between JJill and NESNVX is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and NESNVX 25 14 SEP 41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 25 14 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 25 14 has no effect on the direction of JJill i.e., JJill and NESNVX go up and down completely randomly.

Pair Corralation between JJill and NESNVX

Given the investment horizon of 90 days JJill Inc is expected to generate 1.37 times more return on investment than NESNVX. However, JJill is 1.37 times more volatile than NESNVX 25 14 SEP 41. It trades about -0.03 of its potential returns per unit of risk. NESNVX 25 14 SEP 41 is currently generating about -0.32 per unit of risk. If you would invest  2,753  in JJill Inc on September 29, 2024 and sell it today you would lose (63.00) from holding JJill Inc or give up 2.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	30.0%
Values	Daily Returns

JJill Inc  vs.  NESNVX 25 14 SEP 41

JJill Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JJill Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, JJill may actually be approaching a critical reversion point that can send shares even higher in January 2025.

NESNVX 25 14

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 25 14 SEP 41 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for NESNVX 25 14 SEP 41 investors.

Pair Trading with JJill and NESNVX

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

The idea behind JJill Inc and NESNVX 25 14 SEP 41 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.