Correlation Between Jeffs Brands and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Duluth Holdings 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 Jeffs Brands and Duluth Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Duluth Holdings, you can compare the effects of market volatilities on Jeffs Brands and Duluth Holdings 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 Jeffs Brands with a short position of Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Duluth Holdings.
Diversification Opportunities for Jeffs Brands and Duluth Holdings
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jeffs and Duluth is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings and Jeffs Brands 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 Jeffs Brands are associated (or correlated) with Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Duluth Holdings go up and down completely randomly.
Pair Corralation between Jeffs Brands and Duluth Holdings
Given the investment horizon of 90 days Jeffs Brands is expected to generate 16.15 times more return on investment than Duluth Holdings. However, Jeffs Brands is 16.15 times more volatile than Duluth Holdings. It trades about 0.04 of its potential returns per unit of risk. Duluth Holdings is currently generating about -0.05 per unit of risk. If you would invest 973.00 in Jeffs Brands on December 6, 2024 and sell it today you would lose (826.00) from holding Jeffs Brands or give up 84.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Duluth Holdings
Performance |
| Timeline |
| Jeffs Brands |
| Duluth Holdings |
Jeffs Brands and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Duluth Holdings
The main advantage of trading using opposite Jeffs Brands and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
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 Stocks Directory module to find actively traded stocks across global markets.
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