Correlation Between Jerash Holdings and JLM Couture
Can any of the company-specific risk be diversified away by investing in both Jerash Holdings and JLM Couture 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 Jerash Holdings and JLM Couture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jerash Holdings and JLM Couture, you can compare the effects of market volatilities on Jerash Holdings and JLM Couture 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 Jerash Holdings with a short position of JLM Couture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jerash Holdings and JLM Couture.
Diversification Opportunities for Jerash Holdings and JLM Couture
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jerash and JLM is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jerash Holdings and JLM Couture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLM Couture and Jerash Holdings 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 Jerash Holdings are associated (or correlated) with JLM Couture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLM Couture has no effect on the direction of Jerash Holdings i.e., Jerash Holdings and JLM Couture go up and down completely randomly.
Pair Corralation between Jerash Holdings and JLM Couture
If you would invest 285.00 in Jerash Holdings on September 2, 2024 and sell it today you would earn a total of 56.00 from holding Jerash Holdings or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Jerash Holdings vs. JLM Couture
Performance |
| Timeline |
| Jerash Holdings |
| JLM Couture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jerash Holdings and JLM Couture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jerash Holdings and JLM Couture
The main advantage of trading using opposite Jerash Holdings and JLM Couture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jerash Holdings position performs unexpectedly, JLM Couture 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 JLM Couture will offset losses from the drop in JLM Couture's long position.| Jerash Holdings vs. Vince Holding Corp | Jerash Holdings vs. Oxford Industries | Jerash Holdings vs. Gildan Activewear | Jerash Holdings vs. Columbia Sportswear |
| JLM Couture vs. Jerash Holdings | JLM Couture vs. Lakeland Industries | JLM Couture vs. Oxford Industries | JLM Couture vs. G III Apparel Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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