Correlation Between AGRICUL BK and J JILL
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK 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 AGRICUL BK and J JILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICUL BK CHINA H and J JILL INC, you can compare the effects of market volatilities on AGRICUL BK 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 AGRICUL BK with a short position of J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and J JILL.
Diversification Opportunities for AGRICUL BK and J JILL
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between AGRICUL and 1MJ1 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H 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 AGRICUL BK 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 AGRICUL BK CHINA H 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 AGRICUL BK i.e., AGRICUL BK and J JILL go up and down completely randomly.
Pair Corralation between AGRICUL BK and J JILL
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 2.16 times more return on investment than J JILL. However, AGRICUL BK is 2.16 times more volatile than J JILL INC. It trades about 0.07 of its potential returns per unit of risk. J JILL INC is currently generating about 0.01 per unit of risk. If you would invest 9.78 in AGRICUL BK CHINA H on November 19, 2024 and sell it today you would earn a total of 43.22 from holding AGRICUL BK CHINA H or generate 441.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. J JILL INC
Performance |
| Timeline |
| AGRICUL BK CHINA |
| J JILL INC |
AGRICUL BK and J JILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and J JILL
The main advantage of trading using opposite AGRICUL BK and J JILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK 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.| AGRICUL BK vs. SENECA FOODS A | AGRICUL BK vs. RESONANCE HEALTH | AGRICUL BK vs. Axfood AB | AGRICUL BK vs. EBRO FOODS |
| J JILL vs. Corsair Gaming | J JILL vs. GUARDANT HEALTH CL | J JILL vs. UNIDOC HEALTH P | J JILL vs. DELTA AIR LINES |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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