Correlation Between JJill and Shoe Carnival

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

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

Diversification Opportunities for JJill and Shoe Carnival

0.23

Correlation Coefficient

JJill  Shoe Carnival

Modest diversification

The 3 months correlation between JJill and Shoe is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding JJill Inc and Shoe Carnival in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoe Carnival 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 Shoe Carnival. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoe Carnival has no effect on the direction of JJill i.e., JJill and Shoe Carnival go up and down completely randomly.

Pair Corralation between JJill and Shoe Carnival

Given the investment horizon of 90 days JJill is expected to generate 2.23 times less return on investment than Shoe Carnival. In addition to that, JJill is 1.19 times more volatile than Shoe Carnival. It trades about 0.04 of its total potential returns per unit of risk. Shoe Carnival is currently generating about 0.1 per unit of volatility. If you would invest  1,770  in Shoe Carnival on May 7, 2025 and sell it today you would earn a total of  286.00  from holding Shoe Carnival or generate 16.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

JJill Inc  vs.  Shoe Carnival

JJill Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JJill Inc are ranked lower than 2 (%) 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 September 2025.

Shoe Carnival

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Shoe Carnival are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Shoe Carnival disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JJill and Shoe Carnival

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

The idea behind JJill Inc and Shoe Carnival 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.