Correlation Between JJill and Chicos FAS
Can any of the company-specific risk be diversified away by investing in both JJill and Chicos FAS 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 Chicos FAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JJill Inc and Chicos FAS, you can compare the effects of market volatilities on JJill and Chicos FAS 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 Chicos FAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and Chicos FAS.
Diversification Opportunities for JJill and Chicos FAS
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JJill and Chicos is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and Chicos FAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicos FAS 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 Chicos FAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicos FAS has no effect on the direction of JJill i.e., JJill and Chicos FAS go up and down completely randomly.
Pair Corralation between JJill and Chicos FAS
If you would invest 2,521 in JJill Inc on January 24, 2024 and sell it today you would lose (14.00) from holding JJill Inc or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.44% |
| Values | Daily Returns |
JJill Inc vs. Chicos FAS
Performance |
| Timeline |
| JJill Inc |
| Chicos FAS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JJill and Chicos FAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JJill and Chicos FAS
The main advantage of trading using opposite JJill and Chicos FAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJill position performs unexpectedly, Chicos FAS 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 Chicos FAS will offset losses from the drop in Chicos FAS's long position.The idea behind JJill Inc and Chicos FAS 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.| Chicos FAS vs. Citi Trends | Chicos FAS vs. JJill Inc | Chicos FAS vs. Zumiez Inc | Chicos FAS vs. Tillys Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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