Correlation Between Zumiez and Joint Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Zumiez and Joint Corp 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 Zumiez and Joint Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zumiez Inc and The Joint Corp, you can compare the effects of market volatilities on Zumiez and Joint Corp 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 Zumiez with a short position of Joint Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zumiez and Joint Corp.

Diversification Opportunities for Zumiez and Joint Corp

ZumiezJointDiversified AwayZumiezJointDiversified Away100%
0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Zumiez and Joint is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zumiez Inc and The Joint Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Corp and Zumiez 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 Zumiez Inc are associated (or correlated) with Joint Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Corp has no effect on the direction of Zumiez i.e., Zumiez and Joint Corp go up and down completely randomly.

Pair Corralation between Zumiez and Joint Corp

Given the investment horizon of 90 days Zumiez Inc is expected to under-perform the Joint Corp. In addition to that, Zumiez is 1.29 times more volatile than The Joint Corp. It trades about -0.05 of its total potential returns per unit of risk. The Joint Corp is currently generating about 0.01 per unit of volatility. If you would invest  1,056  in The Joint Corp on October 9, 2024 and sell it today you would lose (3.00) from holding The Joint Corp or give up 0.28% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Zumiez Inc  vs.  The Joint Corp

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10-5051015
JavaScript chart by amCharts 3.21.15ZUMZ JYNT
       Timeline  
Zumiez Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Zumiez Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan192021222324
Joint Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days The Joint Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Joint Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1010.51111.51212.5

Zumiez and Joint Corp Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.48-4.1-2.73-1.35-0.02291.292.654.015.376.73 0.0300.0350.0400.0450.0500.0550.060
JavaScript chart by amCharts 3.21.15ZUMZ JYNT
       Returns  

Pair Trading with Zumiez and Joint Corp

The main advantage of trading using opposite Zumiez and Joint Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zumiez position performs unexpectedly, Joint Corp 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 Joint Corp will offset losses from the drop in Joint Corp's long position.
The idea behind Zumiez Inc and The Joint Corp 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities


 

Trending Assets

SACL
STAR AFRICA PORATION
2.20  0.20  10.00 
FMP
FIRST MUTUAL PROPERTIES
122.95  -0.15  -0.12 
REV
Revitus Property Opp
92.61  -0.64  -0.69 
AFDS
AFRICAN DISTILLERS
700.00  9.00  1.30 
ZBFH
ZB FINANCIAL HOLDINGS
480.00  -72.5  -13.12 
MCMS
Morgan Co Multi
200.00  -11  -5.21 
CAFCA
CAFCA LIMITED
2,050  0.00  0.00 
TANG
TANGANDA TEA PANY
253.16  2.56  1.02