Correlation Between United Natural and J JILL
Can any of the company-specific risk be diversified away by investing in both United Natural 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 United Natural and J JILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Natural Foods and J JILL INC, you can compare the effects of market volatilities on United Natural 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 United Natural with a short position of J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and J JILL.
Diversification Opportunities for United Natural and J JILL
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and 1MJ1 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods 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 United Natural 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 United Natural Foods 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 United Natural i.e., United Natural and J JILL go up and down completely randomly.
Pair Corralation between United Natural and J JILL
Assuming the 90 days horizon United Natural Foods is expected to generate 0.98 times more return on investment than J JILL. However, United Natural Foods is 1.02 times less risky than J JILL. It trades about 0.36 of its potential returns per unit of risk. J JILL INC is currently generating about 0.23 per unit of risk. If you would invest 1,820 in United Natural Foods on August 28, 2024 and sell it today you would earn a total of 390.00 from holding United Natural Foods or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. J JILL INC
Performance |
| Timeline |
| United Natural Foods |
| J JILL INC |
United Natural and J JILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and J JILL
The main advantage of trading using opposite United Natural and J JILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural 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.| United Natural vs. DAIRY FARM INTL | United Natural vs. LION ONE METALS | United Natural vs. Sumitomo Mitsui Construction | United Natural vs. WIMFARM SA EO |
| J JILL vs. RETAIL FOOD GROUP | J JILL vs. Auto Trader Group | J JILL vs. AUTO TRADER ADR | J JILL vs. Canadian Utilities Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |