Correlation Between JJill and MYR
Can any of the company-specific risk be diversified away by investing in both JJill and MYR 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 MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JJill Inc and MYR Group, you can compare the effects of market volatilities on JJill and MYR 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 MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and MYR.
Diversification Opportunities for JJill and MYR
Poor diversification
The 3 months correlation between JJill and MYR is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR Group 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 MYR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYR Group has no effect on the direction of JJill i.e., JJill and MYR go up and down completely randomly.
Pair Corralation between JJill and MYR
Given the investment horizon of 90 days JJill Inc is expected to under-perform the MYR. But the stock apears to be less risky and, when comparing its historical volatility, JJill Inc is 1.25 times less risky than MYR. The stock trades about -0.03 of its potential returns per unit of risk. The MYR Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 13,906 in MYR Group on September 12, 2024 and sell it today you would earn a total of 2,923 from holding MYR Group or generate 21.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JJill Inc vs. MYR Group
Performance |
| Timeline |
| JJill Inc |
| MYR Group |
JJill and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JJill and MYR
The main advantage of trading using opposite JJill and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJill position performs unexpectedly, MYR 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 MYR will offset losses from the drop in MYR's long position.The idea behind JJill Inc and MYR Group 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.| MYR vs. Comfort Systems USA | MYR vs. Granite Construction Incorporated | MYR vs. Dycom Industries | MYR vs. MasTec Inc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |