Correlation Between VF Corp and JD Sports
Can any of the company-specific risk be diversified away by investing in both VF Corp and JD Sports 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 VF Corp and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VF Corp and JD Sports Fashion, you can compare the effects of market volatilities on VF Corp and JD Sports 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 VF Corp with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of VF Corp and JD Sports.
Diversification Opportunities for VF Corp and JD Sports
Excellent diversification
The 3 months correlation between 0R30 and JD Sports is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding VF Corp and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion and VF Corp 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 VF Corp are associated (or correlated) with JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of VF Corp i.e., VF Corp and JD Sports go up and down completely randomly.
Pair Corralation between VF Corp and JD Sports
Assuming the 90 days trading horizon VF Corp is expected to generate 0.98 times more return on investment than JD Sports. However, VF Corp is 1.02 times less risky than JD Sports. It trades about 0.08 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.11 per unit of risk. If you would invest 2,085 in VF Corp on October 11, 2024 and sell it today you would earn a total of 59.00 from holding VF Corp or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
VF Corp vs. JD Sports Fashion
Performance |
| Timeline |
| VF Corp |
| JD Sports Fashion |
VF Corp and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VF Corp and JD Sports
The main advantage of trading using opposite VF Corp and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VF Corp position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| VF Corp vs. Symphony Environmental Technologies | VF Corp vs. Pressure Technologies Plc | VF Corp vs. PureTech Health plc | VF Corp vs. Cars Inc |
| JD Sports vs. Anglo Asian Mining | JD Sports vs. Grieg Seafood | JD Sports vs. Austevoll Seafood ASA | JD Sports vs. Coeur Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |