Correlation Between JJill and Francescas Holdings
Can any of the company-specific risk be diversified away by investing in both JJill and Francescas 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 Francescas 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 Francescas Holdings, you can compare the effects of market volatilities on JJill and Francescas 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 Francescas Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and Francescas Holdings.
Diversification Opportunities for JJill and Francescas Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JJill and Francescas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and Francescas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Francescas 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 Francescas Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Francescas Holdings has no effect on the direction of JJill i.e., JJill and Francescas Holdings go up and down completely randomly.
Pair Corralation between JJill and Francescas Holdings
If you would invest 1,616 in JJill Inc on January 19, 2024 and sell it today you would earn a total of 925.00 from holding JJill Inc or generate 57.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JJill Inc vs. Francescas Holdings
Performance |
| Timeline |
| JJill Inc |
| Francescas Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JJill and Francescas Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JJill and Francescas Holdings
The main advantage of trading using opposite JJill and Francescas Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJill position performs unexpectedly, Francescas 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 Francescas Holdings will offset losses from the drop in Francescas Holdings' long position.The idea behind JJill Inc and Francescas Holdings 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.| Francescas Holdings vs. National Rural Utilities | Francescas Holdings vs. Silvercrest Asset Management | Francescas Holdings vs. LanzaTech Global | Francescas Holdings vs. Aris Water Solutions |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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