Correlation Between Expand Energy and JJill
Can any of the company-specific risk be diversified away by investing in both Expand Energy 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 Expand Energy and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and JJill Inc, you can compare the effects of market volatilities on Expand Energy 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 Expand Energy with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and JJill.
Diversification Opportunities for Expand Energy and JJill
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Expand and JJill is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and Expand Energy 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 Expand Energy 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 Expand Energy i.e., Expand Energy and JJill go up and down completely randomly.
Pair Corralation between Expand Energy and JJill
Considering the 90-day investment horizon Expand Energy is expected to generate 3.4 times less return on investment than JJill. But when comparing it to its historical volatility, Expand Energy is 2.4 times less risky than JJill. It trades about 0.09 of its potential returns per unit of risk. JJill Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,594 in JJill Inc on September 12, 2024 and sell it today you would earn a total of 160.00 from holding JJill Inc or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Expand Energy vs. JJill Inc
Performance |
| Timeline |
| Expand Energy |
| JJill Inc |
Expand Energy and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and JJill
The main advantage of trading using opposite Expand Energy and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy 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.| Expand Energy vs. Rave Restaurant Group | Expand Energy vs. Boston Beer | Expand Energy vs. National Beverage Corp | Expand Energy vs. Cannae 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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