Correlation Between SPORT LISBOA and J JILL
Can any of the company-specific risk be diversified away by investing in both SPORT LISBOA and J JILL 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 SPORT LISBOA and J JILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPORT LISBOA E and J JILL INC, you can compare the effects of market volatilities on SPORT LISBOA and J JILL 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 SPORT LISBOA with a short position of J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPORT LISBOA and J JILL.
Diversification Opportunities for SPORT LISBOA and J JILL
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPORT and 1MJ1 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SPORT LISBOA E and J JILL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J JILL INC and SPORT LISBOA 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 SPORT LISBOA E are associated (or correlated) with J JILL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J JILL INC has no effect on the direction of SPORT LISBOA i.e., SPORT LISBOA and J JILL go up and down completely randomly.
Pair Corralation between SPORT LISBOA and J JILL
Assuming the 90 days horizon SPORT LISBOA E is expected to under-perform the J JILL. But the stock apears to be less risky and, when comparing its historical volatility, SPORT LISBOA E is 1.37 times less risky than J JILL. The stock trades about 0.0 of its potential returns per unit of risk. The J JILL INC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,308 in J JILL INC on August 25, 2024 and sell it today you would earn a total of 92.00 from holding J JILL INC or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPORT LISBOA E vs. J JILL INC
Performance |
| Timeline |
| SPORT LISBOA E |
| J JILL INC |
SPORT LISBOA and J JILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPORT LISBOA and J JILL
The main advantage of trading using opposite SPORT LISBOA and J JILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPORT LISBOA position performs unexpectedly, J JILL 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 J JILL will offset losses from the drop in J JILL's long position.| SPORT LISBOA vs. Adtalem Global Education | SPORT LISBOA vs. Laureate Education | SPORT LISBOA vs. ANTA SPORTS PRODUCT | SPORT LISBOA vs. XLMedia PLC |
| J JILL vs. Transport International Holdings | J JILL vs. Geratherm Medical AG | J JILL vs. SPORT LISBOA E | J JILL vs. IMAGIN MEDICAL 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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