Correlation Between Jerash Holdings and Delta Apparel
Can any of the company-specific risk be diversified away by investing in both Jerash Holdings and Delta Apparel 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 Jerash Holdings and Delta Apparel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jerash Holdings and Delta Apparel, you can compare the effects of market volatilities on Jerash Holdings and Delta Apparel 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 Jerash Holdings with a short position of Delta Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jerash Holdings and Delta Apparel.
Diversification Opportunities for Jerash Holdings and Delta Apparel
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jerash and Delta is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jerash Holdings and Delta Apparel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Apparel and Jerash Holdings 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 Jerash Holdings are associated (or correlated) with Delta Apparel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Apparel has no effect on the direction of Jerash Holdings i.e., Jerash Holdings and Delta Apparel go up and down completely randomly.
Pair Corralation between Jerash Holdings and Delta Apparel
Given the investment horizon of 90 days Jerash Holdings is expected to generate 0.28 times more return on investment than Delta Apparel. However, Jerash Holdings is 3.52 times less risky than Delta Apparel. It trades about 0.0 of its potential returns per unit of risk. Delta Apparel is currently generating about -0.07 per unit of risk. If you would invest 308.00 in Jerash Holdings on January 25, 2024 and sell it today you would lose (0.50) from holding Jerash Holdings or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jerash Holdings vs. Delta Apparel
Performance |
| Timeline |
| Jerash Holdings |
| Delta Apparel |
Jerash Holdings and Delta Apparel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jerash Holdings and Delta Apparel
The main advantage of trading using opposite Jerash Holdings and Delta Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jerash Holdings position performs unexpectedly, Delta Apparel 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 Delta Apparel will offset losses from the drop in Delta Apparel's long position.| Jerash Holdings vs. Vince Holding Corp | Jerash Holdings vs. Oxford Industries | Jerash Holdings vs. Gildan Activewear | Jerash Holdings vs. Columbia Sportswear |
| Delta Apparel vs. G III Apparel Group | Delta Apparel vs. Lakeland Industries | Delta Apparel vs. Oxford Industries | Delta Apparel vs. Superior Uniform Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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