Correlation Between Summa Silver and JJill
Can any of the company-specific risk be diversified away by investing in both Summa Silver 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 Summa Silver and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summa Silver Corp and JJill Inc, you can compare the effects of market volatilities on Summa Silver 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 Summa Silver with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and JJill.
Diversification Opportunities for Summa Silver and JJill
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summa and JJill is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and Summa Silver 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 Summa Silver Corp 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 Summa Silver i.e., Summa Silver and JJill go up and down completely randomly.
Pair Corralation between Summa Silver and JJill
Assuming the 90 days horizon Summa Silver Corp is expected to under-perform the JJill. In addition to that, Summa Silver is 1.37 times more volatile than JJill Inc. It trades about -0.05 of its total potential returns per unit of risk. JJill Inc is currently generating about 0.13 per unit of volatility. If you would invest 2,643 in JJill Inc on September 13, 2024 and sell it today you would earn a total of 180.00 from holding JJill Inc or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Summa Silver Corp vs. JJill Inc
Performance |
| Timeline |
| Summa Silver Corp |
| JJill Inc |
Summa Silver and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summa Silver and JJill
The main advantage of trading using opposite Summa Silver and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver 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.| Summa Silver vs. P2 Gold | Summa Silver vs. Enduro Metals | Summa Silver vs. Kodiak Copper Corp | Summa Silver vs. Mirasol Resources |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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