Correlation Between U Haul and JJill

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

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

Diversification Opportunities for U Haul and JJill

-0.29

Correlation Coefficient

U Haul  JJill

Very good diversification

The 3 months correlation between UHAL and JJill is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and U Haul 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 U Haul Holding are associated (or correlated) with JJill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJill Inc has no effect on the direction of U Haul i.e., U Haul and JJill go up and down completely randomly.

Pair Corralation between U Haul and JJill

Given the investment horizon of 90 days U Haul is expected to generate 2.54 times less return on investment than JJill. But when comparing it to its historical volatility, U Haul Holding is 1.54 times less risky than JJill. It trades about 0.01 of its potential returns per unit of risk. JJill Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,463  in JJill Inc on October 7, 2024 and sell it today you would earn a total of  356.00  from holding JJill Inc or generate 14.45% return on investment over 90 days.

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

U Haul Holding  vs.  JJill Inc

U Haul Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

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.

Pair Trading with U Haul and JJill

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

The idea behind U Haul Holding and JJill Inc 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.