Correlation Between JD SPORTS and FATFISH GROUP
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and FATFISH GROUP 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 JD SPORTS and FATFISH GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD SPORTS FASH and FATFISH GROUP LTD, you can compare the effects of market volatilities on JD SPORTS and FATFISH GROUP 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 JD SPORTS with a short position of FATFISH GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and FATFISH GROUP.
Diversification Opportunities for JD SPORTS and FATFISH GROUP
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 9JD and FATFISH is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and FATFISH GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FATFISH GROUP LTD and JD SPORTS 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 JD SPORTS FASH are associated (or correlated) with FATFISH GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FATFISH GROUP LTD has no effect on the direction of JD SPORTS i.e., JD SPORTS and FATFISH GROUP go up and down completely randomly.
Pair Corralation between JD SPORTS and FATFISH GROUP
Assuming the 90 days horizon JD SPORTS FASH is expected to generate 0.21 times more return on investment than FATFISH GROUP. However, JD SPORTS FASH is 4.69 times less risky than FATFISH GROUP. It trades about -0.01 of its potential returns per unit of risk. FATFISH GROUP LTD is currently generating about -0.16 per unit of risk. If you would invest 99.00 in JD SPORTS FASH on November 28, 2024 and sell it today you would lose (1.00) from holding JD SPORTS FASH or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. FATFISH GROUP LTD
Performance |
| Timeline |
| JD SPORTS FASH |
| FATFISH GROUP LTD |
JD SPORTS and FATFISH GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and FATFISH GROUP
The main advantage of trading using opposite JD SPORTS and FATFISH GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, FATFISH GROUP 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 FATFISH GROUP will offset losses from the drop in FATFISH GROUP's long position.| JD SPORTS vs. GOME Retail Holdings | JD SPORTS vs. VIVA WINE GROUP | JD SPORTS vs. United Utilities Group | JD SPORTS vs. National Retail Properties |
| FATFISH GROUP vs. TROPHY GAMES DEV | FATFISH GROUP vs. Corsair Gaming | FATFISH GROUP vs. OFFICE DEPOT | FATFISH GROUP vs. CITY OFFICE REIT |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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