Correlation Between Jerash Holdings and Delta Apparel

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

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

Diversification Opportunities for Jerash Holdings and Delta Apparel

0.0

Correlation Coefficient

Jerash Holdings  Delta Apparel

Pay attention - limited upside

The 3 months correlation between Jerash and Delta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jerash Holdings and Delta Apparel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Apparel and Jerash Holdings 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 Jerash Holdings are associated (or correlated) with Delta Apparel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Apparel has no effect on the direction of Jerash Holdings i.e., Jerash Holdings and Delta Apparel go up and down completely randomly.

Pair Corralation between Jerash Holdings and Delta Apparel

If you would invest  336.00  in Jerash Holdings on December 19, 2024 and sell it today you would earn a total of  21.00  from holding Jerash Holdings or generate 6.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jerash Holdings  vs.  Delta Apparel

Jerash Holdings

Risk-Adjusted Performance

Modest

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

Delta Apparel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delta Apparel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Delta Apparel is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jerash Holdings and Delta Apparel

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

The idea behind Jerash Holdings and Delta Apparel 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.