Correlation Between Superior Uniform and Jerash Holdings
Can any of the company-specific risk be diversified away by investing in both Superior Uniform and Jerash Holdings 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 Superior Uniform and Jerash Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and Jerash Holdings, you can compare the effects of market volatilities on Superior Uniform and Jerash Holdings 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 Superior Uniform with a short position of Jerash Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and Jerash Holdings.
Diversification Opportunities for Superior Uniform and Jerash Holdings
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and Jerash is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Jerash Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jerash Holdings and Superior Uniform 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 Superior Uniform Group are associated (or correlated) with Jerash Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jerash Holdings has no effect on the direction of Superior Uniform i.e., Superior Uniform and Jerash Holdings go up and down completely randomly.
Pair Corralation between Superior Uniform and Jerash Holdings
Considering the 90-day investment horizon Superior Uniform is expected to generate 2.58 times less return on investment than Jerash Holdings. In addition to that, Superior Uniform is 1.16 times more volatile than Jerash Holdings. It trades about 0.05 of its total potential returns per unit of risk. Jerash Holdings is currently generating about 0.14 per unit of volatility. If you would invest 299.00 in Jerash Holdings on November 1, 2024 and sell it today you would earn a total of 51.00 from holding Jerash Holdings or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Uniform Group vs. Jerash Holdings
Performance |
| Timeline |
| Superior Uniform |
| Jerash Holdings |
Superior Uniform and Jerash Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and Jerash Holdings
The main advantage of trading using opposite Superior Uniform and Jerash Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform position performs unexpectedly, Jerash Holdings 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 Jerash Holdings will offset losses from the drop in Jerash Holdings' long position.| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. Gildan Activewear |
| Jerash Holdings vs. Vince Holding Corp | Jerash Holdings vs. Oxford Industries | Jerash Holdings vs. Gildan Activewear | Jerash Holdings vs. Columbia Sportswear |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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