Correlation Between Doubledown Interactive and JJill
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive 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 Doubledown Interactive and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and JJill Inc, you can compare the effects of market volatilities on Doubledown Interactive 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 Doubledown Interactive with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and JJill.
Diversification Opportunities for Doubledown Interactive and JJill
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Doubledown and JJill is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and Doubledown Interactive 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 Doubledown Interactive Co 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 Doubledown Interactive i.e., Doubledown Interactive and JJill go up and down completely randomly.
Pair Corralation between Doubledown Interactive and JJill
Considering the 90-day investment horizon Doubledown Interactive Co is expected to generate 1.42 times more return on investment than JJill. However, Doubledown Interactive is 1.42 times more volatile than JJill Inc. It trades about 0.05 of its potential returns per unit of risk. JJill Inc is currently generating about 0.04 per unit of risk. If you would invest 948.00 in Doubledown Interactive Co on September 2, 2024 and sell it today you would earn a total of 452.00 from holding Doubledown Interactive Co or generate 47.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubledown Interactive Co vs. JJill Inc
Performance |
| Timeline |
| Doubledown Interactive |
| JJill Inc |
Doubledown Interactive and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and JJill
The main advantage of trading using opposite Doubledown Interactive and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive 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.| Doubledown Interactive vs. Gravity Co | Doubledown Interactive vs. NetEase | Doubledown Interactive vs. Snail, Class A | Doubledown Interactive vs. GameSquare Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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