Correlation Between Jerash Holdings and Canada Goose
Can any of the company-specific risk be diversified away by investing in both Jerash Holdings and Canada Goose 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 Canada Goose into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jerash Holdings and Canada Goose Holdings, you can compare the effects of market volatilities on Jerash Holdings and Canada Goose 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 Canada Goose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jerash Holdings and Canada Goose.
Diversification Opportunities for Jerash Holdings and Canada Goose
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jerash and Canada is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jerash Holdings and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings 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 Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of Jerash Holdings i.e., Jerash Holdings and Canada Goose go up and down completely randomly.
Pair Corralation between Jerash Holdings and Canada Goose
Given the investment horizon of 90 days Jerash Holdings is expected to generate 0.45 times more return on investment than Canada Goose. However, Jerash Holdings is 2.21 times less risky than Canada Goose. It trades about -0.03 of its potential returns per unit of risk. Canada Goose Holdings is currently generating about -0.03 per unit of risk. If you would invest 307.00 in Jerash Holdings on January 20, 2024 and sell it today you would lose (12.00) from holding Jerash Holdings or give up 3.91% 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. Canada Goose Holdings
Performance |
| Timeline |
| Jerash Holdings |
| Canada Goose Holdings |
Jerash Holdings and Canada Goose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jerash Holdings and Canada Goose
The main advantage of trading using opposite Jerash Holdings and Canada Goose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jerash Holdings position performs unexpectedly, Canada Goose 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 Canada Goose will offset losses from the drop in Canada Goose's long position.| Jerash Holdings vs. Brunswick | Jerash Holdings vs. BRP Inc | Jerash Holdings vs. VOXX International | Jerash Holdings vs. Vizio Holding Corp |
| Canada Goose vs. Brunswick | Canada Goose vs. BRP Inc | Canada Goose vs. VOXX International | Canada Goose vs. Vizio Holding Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |