Correlation Between Delta Apparel and Jerash Holdings
Can any of the company-specific risk be diversified away by investing in both Delta Apparel and Jerash Holdings 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 Delta Apparel and Jerash Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Apparel and Jerash Holdings, you can compare the effects of market volatilities on Delta Apparel and Jerash Holdings 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 Delta Apparel with a short position of Jerash Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Apparel and Jerash Holdings.
Diversification Opportunities for Delta Apparel and Jerash Holdings
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delta and Jerash is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Delta Apparel and Jerash Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jerash Holdings and Delta Apparel 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 Delta Apparel are associated (or correlated) with Jerash Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jerash Holdings has no effect on the direction of Delta Apparel i.e., Delta Apparel and Jerash Holdings go up and down completely randomly.
Pair Corralation between Delta Apparel and Jerash Holdings
If you would invest 298.00 in Jerash Holdings on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Jerash Holdings or generate 15.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Delta Apparel vs. Jerash Holdings
Performance |
| Timeline |
| Delta Apparel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jerash Holdings |
Delta Apparel and Jerash Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Apparel and Jerash Holdings
The main advantage of trading using opposite Delta Apparel and Jerash Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Apparel position performs unexpectedly, Jerash Holdings 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 Jerash Holdings will offset losses from the drop in Jerash Holdings' long position.| Delta Apparel vs. Lakeland Industries | Delta Apparel vs. Vince Holding Corp | Delta Apparel vs. Jerash Holdings | Delta Apparel vs. G III Apparel Group |
| Jerash Holdings vs. Vince Holding Corp | Jerash Holdings vs. Oxford Industries | Jerash Holdings vs. Gildan Activewear | Jerash Holdings vs. Columbia Sportswear |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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