Correlation Between JJill and Urstadt Biddle

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

By analyzing existing cross correlation between JJill Inc and Urstadt Biddle Properties, you can compare the effects of market volatilities on JJill and Urstadt Biddle 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 Urstadt Biddle. Check out your portfolio center. Please also check ongoing floating volatility patterns of JJill and Urstadt Biddle.

Diversification Opportunities for JJill and Urstadt Biddle

0.7

Correlation Coefficient

JJill  Urstadt Biddle

Poor diversification

The 3 months correlation between JJill and Urstadt is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and Urstadt Biddle Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urstadt Biddle Properties 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 Urstadt Biddle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urstadt Biddle Properties has no effect on the direction of JJill i.e., JJill and Urstadt Biddle go up and down completely randomly.

Pair Corralation between JJill and Urstadt Biddle

Given the investment horizon of 90 days JJill Inc is expected to generate 1.48 times more return on investment than Urstadt Biddle. However, JJill is 1.48 times more volatile than Urstadt Biddle Properties. It trades about 0.05 of its potential returns per unit of risk. Urstadt Biddle Properties is currently generating about 0.05 per unit of risk. If you would invest  1,575  in JJill Inc on January 20, 2024 and sell it today you would earn a total of  975.00  from holding JJill Inc or generate 61.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	66.06%
Values	Daily Returns

JJill Inc  vs.  Urstadt Biddle Properties

JJill Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JJill Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, JJill is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Urstadt Biddle Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urstadt Biddle Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Urstadt Biddle is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JJill and Urstadt Biddle

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

The idea behind JJill Inc and Urstadt Biddle Properties 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.