Correlation Between LandBridge Company and JJill
Can any of the company-specific risk be diversified away by investing in both LandBridge Company and JJill 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 LandBridge Company and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LandBridge Company LLC and JJill Inc, you can compare the effects of market volatilities on LandBridge Company and JJill 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 LandBridge Company with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of LandBridge Company and JJill.
Diversification Opportunities for LandBridge Company and JJill
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LandBridge and JJill is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding LandBridge Company LLC and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and LandBridge Company 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 LandBridge Company LLC are associated (or correlated) with JJill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJill Inc has no effect on the direction of LandBridge Company i.e., LandBridge Company and JJill go up and down completely randomly.
Pair Corralation between LandBridge Company and JJill
Allowing for the 90-day total investment horizon LandBridge Company LLC is expected to generate 2.45 times more return on investment than JJill. However, LandBridge Company is 2.45 times more volatile than JJill Inc. It trades about 0.28 of its potential returns per unit of risk. JJill Inc is currently generating about 0.22 per unit of risk. If you would invest 5,349 in LandBridge Company LLC on August 28, 2024 and sell it today you would earn a total of 2,002 from holding LandBridge Company LLC or generate 37.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LandBridge Company LLC vs. JJill Inc
Performance |
| Timeline |
| LandBridge Company |
| JJill Inc |
LandBridge Company and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LandBridge Company and JJill
The main advantage of trading using opposite LandBridge Company and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LandBridge Company position performs unexpectedly, JJill 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 JJill will offset losses from the drop in JJill's long position.| LandBridge Company vs. FactSet Research Systems | LandBridge Company vs. FiscalNote Holdings | LandBridge Company vs. Getty Images Holdings | LandBridge Company vs. Mativ Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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