Correlation Between Vince Holding and Jerash Holdings

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

By analyzing existing cross correlation between Vince Holding Corp and Jerash Holdings, you can compare the effects of market volatilities on Vince Holding and Jerash Holdings 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 Vince Holding with a short position of Jerash Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vince Holding and Jerash Holdings.

Diversification Opportunities for Vince Holding and Jerash Holdings

-0.53

Correlation Coefficient

Vince Holding  Jerash Holdings

Excellent diversification

The 3 months correlation between Vince and Jerash is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vince Holding Corp and Jerash Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jerash Holdings and Vince Holding 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 Vince Holding Corp are associated (or correlated) with Jerash Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jerash Holdings has no effect on the direction of Vince Holding i.e., Vince Holding and Jerash Holdings go up and down completely randomly.

Pair Corralation between Vince Holding and Jerash Holdings

Given the investment horizon of 90 days Vince Holding Corp is expected to under-perform the Jerash Holdings. In addition to that, Vince Holding is 2.29 times more volatile than Jerash Holdings. It trades about -0.04 of its total potential returns per unit of risk. Jerash Holdings is currently generating about 0.1 per unit of volatility. If you would invest  298.00  in Jerash Holdings on May 6, 2025 and sell it today you would earn a total of  32.00  from holding Jerash Holdings or generate 10.74% return on investment over 90 days.

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

Vince Holding Corp  vs.  Jerash Holdings

Vince Holding Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vince Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Jerash Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jerash Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Jerash Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Vince Holding and Jerash Holdings

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

The idea behind Vince Holding Corp and Jerash Holdings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.