Correlation Between EPlay Digital and JD SPORTS

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Can any of the company-specific risk be diversified away by investing in both EPlay Digital 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 EPlay Digital and JD SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlay Digital and JD SPORTS FASH, you can compare the effects of market volatilities on EPlay Digital 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 EPlay Digital with a short position of JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlay Digital and JD SPORTS.

Diversification Opportunities for EPlay Digital and JD SPORTS

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between EPlay and 9JD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ePlay Digital and JD SPORTS FASH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD SPORTS FASH and EPlay Digital 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 ePlay Digital 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 FASH has no effect on the direction of EPlay Digital i.e., EPlay Digital and JD SPORTS go up and down completely randomly.

Pair Corralation between EPlay Digital and JD SPORTS

If you would invest  0.10  in ePlay Digital on August 29, 2024 and sell it today you would earn a total of  0.00  from holding ePlay Digital or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ePlay Digital  vs.  JD SPORTS FASH

 Performance 
       Timeline  
ePlay Digital 

Risk-Adjusted Performance

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Over the last 90 days ePlay Digital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, EPlay Digital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JD SPORTS FASH 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JD SPORTS FASH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

EPlay Digital and JD SPORTS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with EPlay Digital and JD SPORTS

The main advantage of trading using opposite EPlay Digital and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlay Digital 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's long position.
EPlay Digital vs. Apple Inc
EPlay Digital vs. Apple Inc
EPlay Digital vs. Apple Inc
EPlay Digital vs. Apple Inc
The idea behind ePlay Digital and JD SPORTS FASH 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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