Correlation Between FAST RETAILCOSPHDR and J JILL
Can any of the company-specific risk be diversified away by investing in both FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR and J JILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAILCOSPHDR 1 and J JILL INC, you can compare the effects of market volatilities on FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR with a short position of J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAILCOSPHDR and J JILL.
Diversification Opportunities for FAST RETAILCOSPHDR and J JILL
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FAST and 1MJ1 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAILCOSPHDR 1 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 FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR 1 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 FAST RETAILCOSPHDR i.e., FAST RETAILCOSPHDR and J JILL go up and down completely randomly.
Pair Corralation between FAST RETAILCOSPHDR and J JILL
Assuming the 90 days trading horizon FAST RETAILCOSPHDR 1 is expected to generate 1.18 times more return on investment than J JILL. However, FAST RETAILCOSPHDR is 1.18 times more volatile than J JILL INC. It trades about 0.05 of its potential returns per unit of risk. J JILL INC is currently generating about 0.0 per unit of risk. If you would invest 198.00 in FAST RETAILCOSPHDR 1 on August 25, 2024 and sell it today you would earn a total of 82.00 from holding FAST RETAILCOSPHDR 1 or generate 41.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAST RETAILCOSPHDR 1 vs. J JILL INC
Performance |
| Timeline |
| FAST RETAILCOSPHDR |
| J JILL INC |
FAST RETAILCOSPHDR and J JILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAST RETAILCOSPHDR and J JILL
The main advantage of trading using opposite FAST RETAILCOSPHDR and J JILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAILCOSPHDR 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.| FAST RETAILCOSPHDR vs. FAST RETAIL ADR | FAST RETAILCOSPHDR vs. AOYAMA TRADING | FAST RETAILCOSPHDR vs. J JILL INC | FAST RETAILCOSPHDR vs. Superior Plus Corp |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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