Correlation Between Vera Bradley and JJill
Can any of the company-specific risk be diversified away by investing in both Vera Bradley 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 Vera Bradley and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vera Bradley and JJill Inc, you can compare the effects of market volatilities on Vera Bradley 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 Vera Bradley with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vera Bradley and JJill.
Diversification Opportunities for Vera Bradley and JJill
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vera and JJill is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Vera Bradley and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and Vera Bradley 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 Vera Bradley 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 Vera Bradley i.e., Vera Bradley and JJill go up and down completely randomly.
Pair Corralation between Vera Bradley and JJill
Considering the 90-day investment horizon Vera Bradley is expected to under-perform the JJill. In addition to that, Vera Bradley is 1.62 times more volatile than JJill Inc. It trades about -0.2 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vera Bradley vs. JJill Inc
Performance |
| Timeline |
| Vera Bradley |
| JJill Inc |
Vera Bradley and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vera Bradley and JJill
The main advantage of trading using opposite Vera Bradley and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vera Bradley 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.| Vera Bradley vs. Rocky Brands | Vera Bradley vs. Steven Madden | Vera Bradley vs. Wolverine World Wide | Vera Bradley vs. Caleres |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |