Correlation Between Haverty Furniture and J JILL
Can any of the company-specific risk be diversified away by investing in both Haverty Furniture and J JILL 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 Haverty Furniture and J JILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haverty Furniture Companies and J JILL INC, you can compare the effects of market volatilities on Haverty Furniture and J JILL 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 Haverty Furniture with a short position of J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haverty Furniture and J JILL.
Diversification Opportunities for Haverty Furniture and J JILL
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Haverty and 1MJ1 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Haverty Furniture Companies and J JILL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J JILL INC and Haverty Furniture 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 Haverty Furniture Companies are associated (or correlated) with J JILL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J JILL INC has no effect on the direction of Haverty Furniture i.e., Haverty Furniture and J JILL go up and down completely randomly.
Pair Corralation between Haverty Furniture and J JILL
Assuming the 90 days horizon Haverty Furniture Companies is expected to under-perform the J JILL. But the stock apears to be less risky and, when comparing its historical volatility, Haverty Furniture Companies is 1.21 times less risky than J JILL. The stock trades about 0.0 of its potential returns per unit of risk. The J JILL INC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,367 in J JILL INC on September 3, 2024 and sell it today you would earn a total of 233.00 from holding J JILL INC or generate 9.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haverty Furniture Companies vs. J JILL INC
Performance |
| Timeline |
| Haverty Furniture |
| J JILL INC |
Haverty Furniture and J JILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haverty Furniture and J JILL
The main advantage of trading using opposite Haverty Furniture and J JILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haverty Furniture position performs unexpectedly, J JILL 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 J JILL will offset losses from the drop in J JILL's long position.| Haverty Furniture vs. Lowes Companies | Haverty Furniture vs. Superior Plus Corp | Haverty Furniture vs. NMI Holdings | Haverty Furniture vs. Origin Agritech |
| J JILL vs. FAST RETAILCOSPHDR 1 | J JILL vs. FAST RETAIL ADR | J JILL vs. Ross Stores | J JILL vs. Designer Brands |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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