Correlation Between Hibbett Sports and JJill
Can any of the company-specific risk be diversified away by investing in both Hibbett Sports 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 Hibbett Sports and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hibbett Sports and JJill Inc, you can compare the effects of market volatilities on Hibbett Sports 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 Hibbett Sports with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hibbett Sports and JJill.
Diversification Opportunities for Hibbett Sports and JJill
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hibbett and JJill is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hibbett Sports and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and Hibbett Sports 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 Hibbett Sports 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 Hibbett Sports i.e., Hibbett Sports and JJill go up and down completely randomly.
Pair Corralation between Hibbett Sports and JJill
Given the investment horizon of 90 days Hibbett Sports is expected to generate 0.99 times more return on investment than JJill. However, Hibbett Sports is 1.01 times less risky than JJill. It trades about 0.04 of its potential returns per unit of risk. JJill Inc is currently generating about 0.02 per unit of risk. If you would invest 6,443 in Hibbett Sports on August 23, 2024 and sell it today you would earn a total of 2,306 from holding Hibbett Sports or generate 35.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.06% |
| Values | Daily Returns |
Hibbett Sports vs. JJill Inc
Performance |
| Timeline |
| Hibbett Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JJill Inc |
Hibbett Sports and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hibbett Sports and JJill
The main advantage of trading using opposite Hibbett Sports and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hibbett Sports 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.| Hibbett Sports vs. Big 5 Sporting | Hibbett Sports vs. Genesco | Hibbett Sports vs. Shoe Carnival | Hibbett Sports vs. MarineMax |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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