Correlation Between J JILL and Identiv
Can any of the company-specific risk be diversified away by investing in both J JILL and Identiv 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 J JILL and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J JILL INC and Identiv, you can compare the effects of market volatilities on J JILL and Identiv 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 J JILL with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of J JILL and Identiv.
Diversification Opportunities for J JILL and Identiv
Good diversification
The 3 months correlation between 1MJ1 and Identiv is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding J JILL INC and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and J JILL 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 J JILL INC are associated (or correlated) with Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of J JILL i.e., J JILL and Identiv go up and down completely randomly.
Pair Corralation between J JILL and Identiv
Assuming the 90 days trading horizon J JILL is expected to generate 1.53 times less return on investment than Identiv. But when comparing it to its historical volatility, J JILL INC is 1.2 times less risky than Identiv. It trades about 0.18 of its potential returns per unit of risk. Identiv is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Identiv on August 28, 2024 and sell it today you would earn a total of 49.00 from holding Identiv or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
J JILL INC vs. Identiv
Performance |
| Timeline |
| J JILL INC |
| Identiv |
J JILL and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J JILL and Identiv
The main advantage of trading using opposite J JILL and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J JILL position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| J JILL vs. RETAIL FOOD GROUP | J JILL vs. Auto Trader Group | J JILL vs. AUTO TRADER ADR | J JILL vs. Canadian Utilities Limited |
| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |