Correlation Between JJill and Kontoor Brands
Can any of the company-specific risk be diversified away by investing in both JJill and Kontoor Brands 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 JJill and Kontoor Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JJill Inc and Kontoor Brands, you can compare the effects of market volatilities on JJill and Kontoor Brands 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 JJill with a short position of Kontoor Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and Kontoor Brands.
Diversification Opportunities for JJill and Kontoor Brands
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JJill and Kontoor is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and Kontoor Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontoor Brands and JJill 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 JJill Inc are associated (or correlated) with Kontoor Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontoor Brands has no effect on the direction of JJill i.e., JJill and Kontoor Brands go up and down completely randomly.
Pair Corralation between JJill and Kontoor Brands
Given the investment horizon of 90 days JJill Inc is expected to generate 0.44 times more return on investment than Kontoor Brands. However, JJill Inc is 2.27 times less risky than Kontoor Brands. It trades about -0.35 of its potential returns per unit of risk. Kontoor Brands is currently generating about -0.23 per unit of risk. If you would invest 2,772 in JJill Inc on November 28, 2024 and sell it today you would lose (328.00) from holding JJill Inc or give up 11.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJill Inc vs. Kontoor Brands
Performance |
| Timeline |
| JJill Inc |
| Kontoor Brands |
JJill and Kontoor Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JJill and Kontoor Brands
The main advantage of trading using opposite JJill and Kontoor Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJill position performs unexpectedly, Kontoor Brands 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 Kontoor Brands will offset losses from the drop in Kontoor Brands' long position.The idea behind JJill Inc and Kontoor Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |