Correlation Between 037833EC0 and JJill

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

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

Diversification Opportunities for 037833EC0 and JJill

-0.21

Correlation Coefficient

037833EC0  JJill

Very good diversification

The 3 months correlation between 037833EC0 and JJill is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AAPL 12 08 FEB 28 and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and 037833EC0 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 AAPL 12 08 FEB 28 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 037833EC0 i.e., 037833EC0 and JJill go up and down completely randomly.

Pair Corralation between 037833EC0 and JJill

Assuming the 90 days trading horizon 037833EC0 is expected to generate 28.06 times less return on investment than JJill. But when comparing it to its historical volatility, AAPL 12 08 FEB 28 is 9.47 times less risky than JJill. It trades about 0.03 of its potential returns per unit of risk. JJill Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,476  in JJill Inc on October 20, 2024 and sell it today you would earn a total of  253.00  from holding JJill Inc or generate 10.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

AAPL 12 08 FEB 28  vs.  JJill Inc

AAPL 12 08

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AAPL 12 08 FEB 28 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 037833EC0 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

JJill Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JJill Inc are ranked lower than 6 (%) 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 February 2025.

Pair Trading with 037833EC0 and JJill

The main advantage of trading using opposite 037833EC0 and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 037833EC0 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 AAPL 12 08 FEB 28 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.