Correlation Between JD SPORTS and Healthequity
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Healthequity 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 Healthequity 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 Healthequity, you can compare the effects of market volatilities on JD SPORTS and Healthequity 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 Healthequity. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Healthequity.
Diversification Opportunities for JD SPORTS and Healthequity
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 9JD and Healthequity is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Healthequity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthequity 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 Healthequity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthequity has no effect on the direction of JD SPORTS i.e., JD SPORTS and Healthequity go up and down completely randomly.
Pair Corralation between JD SPORTS and Healthequity
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the Healthequity. In addition to that, JD SPORTS is 2.87 times more volatile than Healthequity. It trades about -0.16 of its total potential returns per unit of risk. Healthequity is currently generating about 0.32 per unit of volatility. If you would invest 9,300 in Healthequity on October 25, 2024 and sell it today you would earn a total of 800.00 from holding Healthequity or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. Healthequity
Performance |
| Timeline |
| JD SPORTS FASH |
| Healthequity |
JD SPORTS and Healthequity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and Healthequity
The main advantage of trading using opposite JD SPORTS and Healthequity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Healthequity 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 Healthequity will offset losses from the drop in Healthequity's long position.| JD SPORTS vs. Japan Asia Investment | JD SPORTS vs. Retail Estates NV | JD SPORTS vs. AOYAMA TRADING | JD SPORTS vs. PICKN PAY STORES |
| Healthequity vs. Cognizant Technology Solutions | Healthequity vs. URBAN OUTFITTERS | Healthequity vs. Amkor Technology | Healthequity vs. G III Apparel Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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