Correlation Between JD SPORTS and MSAD INSURANCE
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and MSAD INSURANCE 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 MSAD INSURANCE 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 MSAD INSURANCE, you can compare the effects of market volatilities on JD SPORTS and MSAD INSURANCE 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 MSAD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and MSAD INSURANCE.
Diversification Opportunities for JD SPORTS and MSAD INSURANCE
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 9JD and MSAD is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and MSAD INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSAD INSURANCE 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 MSAD INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSAD INSURANCE has no effect on the direction of JD SPORTS i.e., JD SPORTS and MSAD INSURANCE go up and down completely randomly.
Pair Corralation between JD SPORTS and MSAD INSURANCE
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the MSAD INSURANCE. In addition to that, JD SPORTS is 1.54 times more volatile than MSAD INSURANCE. It trades about -0.01 of its total potential returns per unit of risk. MSAD INSURANCE is currently generating about 0.11 per unit of volatility. If you would invest 1,193 in MSAD INSURANCE on September 1, 2024 and sell it today you would earn a total of 907.00 from holding MSAD INSURANCE or generate 76.03% 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. MSAD INSURANCE
Performance |
| Timeline |
| JD SPORTS FASH |
| MSAD INSURANCE |
JD SPORTS and MSAD INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and MSAD INSURANCE
The main advantage of trading using opposite JD SPORTS and MSAD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, MSAD INSURANCE 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 MSAD INSURANCE will offset losses from the drop in MSAD INSURANCE's long position.| JD SPORTS vs. AOYAMA TRADING | JD SPORTS vs. Global Fashion Group | JD SPORTS vs. Superior Plus Corp | JD SPORTS vs. NMI Holdings |
| MSAD INSURANCE vs. SIVERS SEMICONDUCTORS AB | MSAD INSURANCE vs. Darden Restaurants | MSAD INSURANCE vs. Reliance Steel Aluminum | MSAD INSURANCE vs. Q2M Managementberatung AG |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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