Correlation Between JJill and NUCOR
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By analyzing existing cross correlation between JJill Inc and NUCOR P 395, you can compare the effects of market volatilities on JJill and NUCOR 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 NUCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and NUCOR.
Diversification Opportunities for JJill and NUCOR
Significant diversification
The 3 months correlation between JJill and NUCOR is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and NUCOR P 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NUCOR P 5 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 NUCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NUCOR P 5 has no effect on the direction of JJill i.e., JJill and NUCOR go up and down completely randomly.
Pair Corralation between JJill and NUCOR
Given the investment horizon of 90 days JJill Inc is expected to generate 5.72 times more return on investment than NUCOR. However, JJill is 5.72 times more volatile than NUCOR P 395. It trades about 0.02 of its potential returns per unit of risk. NUCOR P 395 is currently generating about 0.01 per unit of risk. If you would invest 2,528 in JJill Inc on September 2, 2024 and sell it today you would earn a total of 232.00 from holding JJill Inc or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
JJill Inc vs. NUCOR P 395
Performance |
| Timeline |
| JJill Inc |
| NUCOR P 5 |
JJill and NUCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JJill and NUCOR
The main advantage of trading using opposite JJill and NUCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJill position performs unexpectedly, NUCOR 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 NUCOR will offset losses from the drop in NUCOR's long position.The idea behind JJill Inc and NUCOR P 395 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.| NUCOR vs. Stepan Company | NUCOR vs. Chemours Co | NUCOR vs. Arrow Electronics | NUCOR vs. Hudson Technologies |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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