Correlation Between GRIID Infrastructure and JJill
Can any of the company-specific risk be diversified away by investing in both GRIID Infrastructure 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 GRIID Infrastructure and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRIID Infrastructure Warrant and JJill Inc, you can compare the effects of market volatilities on GRIID Infrastructure 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 GRIID Infrastructure with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIID Infrastructure and JJill.
Diversification Opportunities for GRIID Infrastructure and JJill
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRIID and JJill is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GRIID Infrastructure Warrant and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and GRIID Infrastructure 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 GRIID Infrastructure Warrant 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 GRIID Infrastructure i.e., GRIID Infrastructure and JJill go up and down completely randomly.
Pair Corralation between GRIID Infrastructure and JJill
Assuming the 90 days horizon GRIID Infrastructure Warrant is expected to generate 8.37 times more return on investment than JJill. However, GRIID Infrastructure is 8.37 times more volatile than JJill Inc. It trades about 0.06 of its potential returns per unit of risk. JJill Inc is currently generating about 0.02 per unit of risk. If you would invest 12.00 in GRIID Infrastructure Warrant on September 2, 2024 and sell it today you would lose (9.60) from holding GRIID Infrastructure Warrant or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.65% |
| Values | Daily Returns |
GRIID Infrastructure Warrant vs. JJill Inc
Performance |
| Timeline |
| GRIID Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| JJill Inc |
GRIID Infrastructure and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIID Infrastructure and JJill
The main advantage of trading using opposite GRIID Infrastructure and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIID Infrastructure 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.| GRIID Infrastructure vs. Asure Software | GRIID Infrastructure vs. Verra Mobility Corp | GRIID Infrastructure vs. ServiceNow | GRIID Infrastructure vs. Sun Country Airlines |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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