Correlation Between JJill and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both JJill and Duluth Holdings 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 Duluth Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JJill Inc and Duluth Holdings, you can compare the effects of market volatilities on JJill and Duluth Holdings 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 Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and Duluth Holdings.
Diversification Opportunities for JJill and Duluth Holdings
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between JJill and Duluth is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings 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 Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of JJill i.e., JJill and Duluth Holdings go up and down completely randomly.
Pair Corralation between JJill and Duluth Holdings
Given the investment horizon of 90 days JJill Inc is expected to under-perform the Duluth Holdings. In addition to that, JJill is 1.5 times more volatile than Duluth Holdings. It trades about -0.35 of its total potential returns per unit of risk. Duluth Holdings is currently generating about -0.33 per unit of volatility. If you would invest 485.00 in Duluth Holdings on January 26, 2024 and sell it today you would lose (56.00) from holding Duluth Holdings or give up 11.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJill Inc vs. Duluth Holdings
Performance |
| Timeline |
| JJill Inc |
| Duluth Holdings |
JJill and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JJill and Duluth Holdings
The main advantage of trading using opposite JJill and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJill position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' long position.| JJill vs. American Eagle Outfitters | JJill vs. Abercrombie Fitch | JJill vs. Urban Outfitters | JJill vs. Foot Locker |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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