Correlation Between Titan Machinery and J JILL

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

By analyzing existing cross correlation between Titan Machinery and J JILL INC, you can compare the effects of market volatilities on Titan Machinery and J JILL 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 Titan Machinery with a short position of J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Machinery and J JILL.

Diversification Opportunities for Titan Machinery and J JILL

0.36

Correlation Coefficient

Titan Machinery  J JILL

Weak diversification

The 3 months correlation between Titan and 1MJ1 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Titan Machinery and J JILL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J JILL INC and Titan Machinery 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 Titan Machinery are associated (or correlated) with J JILL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J JILL INC has no effect on the direction of Titan Machinery i.e., Titan Machinery and J JILL go up and down completely randomly.

Pair Corralation between Titan Machinery and J JILL

Assuming the 90 days horizon Titan Machinery is expected to generate 0.73 times more return on investment than J JILL. However, Titan Machinery is 1.36 times less risky than J JILL. It trades about 0.09 of its potential returns per unit of risk. J JILL INC is currently generating about 0.02 per unit of risk. If you would invest  1,440  in Titan Machinery on April 24, 2025 and sell it today you would earn a total of  190.00  from holding Titan Machinery or generate 13.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Titan Machinery  vs.  J JILL INC

Titan Machinery

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Titan Machinery are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Titan Machinery reported solid returns over the last few months and may actually be approaching a breakup point.

J JILL INC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in J JILL INC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward-looking indicators, J JILL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Titan Machinery and J JILL

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

The idea behind Titan Machinery and J JILL 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.

Check out your portfolio center.

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.