Correlation Between JJill and Carson Development

Can any of the company-specific risk be diversified away by investing in both JJill and Carson Development 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 JJill and Carson Development into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JJill Inc and Carson Development, you can compare the effects of market volatilities on JJill and Carson Development 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 JJill with a short position of Carson Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and Carson Development.

Diversification Opportunities for JJill and Carson Development

0.0

Correlation Coefficient

JJill  Carson Development

Pay attention - limited upside

The 3 months correlation between JJill and Carson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and Carson Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carson Development and JJill 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 JJill Inc are associated (or correlated) with Carson Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carson Development has no effect on the direction of JJill i.e., JJill and Carson Development go up and down completely randomly.

Pair Corralation between JJill and Carson Development

If you would invest  2,414  in JJill Inc on September 25, 2024 and sell it today you would earn a total of  213.00  from holding JJill Inc or generate 8.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

JJill Inc  vs.  Carson Development

JJill Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JJill Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, JJill may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Carson Development

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Carson Development has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Carson Development is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with JJill and Carson Development

The main advantage of trading using opposite JJill and Carson Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JJill position performs unexpectedly, Carson Development 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 Carson Development will offset losses from the drop in Carson Development's long position.

The idea behind JJill Inc and Carson Development 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.