Correlation Between Evolution Mining and JJill
Can any of the company-specific risk be diversified away by investing in both Evolution Mining and JJill 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 Evolution Mining and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Mining and JJill Inc, you can compare the effects of market volatilities on Evolution Mining and JJill 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 Evolution Mining with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and JJill.
Diversification Opportunities for Evolution Mining and JJill
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Evolution and JJill is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and Evolution Mining 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 Evolution Mining are associated (or correlated) with JJill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJill Inc has no effect on the direction of Evolution Mining i.e., Evolution Mining and JJill go up and down completely randomly.
Pair Corralation between Evolution Mining and JJill
Assuming the 90 days horizon Evolution Mining is expected to generate 0.96 times more return on investment than JJill. However, Evolution Mining is 1.04 times less risky than JJill. It trades about 0.21 of its potential returns per unit of risk. JJill Inc is currently generating about 0.13 per unit of risk. If you would invest 285.00 in Evolution Mining on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Evolution Mining or generate 10.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Mining vs. JJill Inc
Performance |
| Timeline |
| Evolution Mining |
| JJill Inc |
Evolution Mining and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and JJill
The main advantage of trading using opposite Evolution Mining and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining position performs unexpectedly, JJill 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 JJill will offset losses from the drop in JJill's long position.| Evolution Mining vs. Revival Gold | Evolution Mining vs. Galiano Gold | Evolution Mining vs. US Gold Corp | Evolution Mining vs. HUMANA INC |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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