Correlation Between Apogee Enterprises and JJill

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Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises 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 Apogee Enterprises and JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and JJill Inc, you can compare the effects of market volatilities on Apogee Enterprises 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 Apogee Enterprises with a short position of JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and JJill.

Diversification Opportunities for Apogee Enterprises and JJill

ApogeeJJillDiversified AwayApogeeJJillDiversified Away100%
0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Apogee and JJill is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc and Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises i.e., Apogee Enterprises and JJill go up and down completely randomly.

Pair Corralation between Apogee Enterprises and JJill

Given the investment horizon of 90 days Apogee Enterprises is expected to generate 1.44 times more return on investment than JJill. However, Apogee Enterprises is 1.44 times more volatile than JJill Inc. It trades about 0.04 of its potential returns per unit of risk. JJill Inc is currently generating about 0.05 per unit of risk. If you would invest  6,722  in Apogee Enterprises on September 21, 2024 and sell it today you would earn a total of  407.00  from holding Apogee Enterprises or generate 6.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Apogee Enterprises  vs.  JJill Inc

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -50510152025
JavaScript chart by amCharts 3.21.15APOG JILL
       Timeline  
Apogee Enterprises 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Apogee Enterprises are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Apogee Enterprises may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec70758085
JJill Inc 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in JJill Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, JJill may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec24252627282930

Apogee Enterprises and JJill Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.69-8.01-5.32-2.640.042.645.388.1110.8513.59 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15APOG JILL
       Returns  

Pair Trading with Apogee Enterprises and JJill

The main advantage of trading using opposite Apogee Enterprises and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises 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.
The idea behind Apogee Enterprises and JJill Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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