Correlation Between JD SPORTS and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and ARDAGH METAL 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 ARDAGH METAL 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 ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on JD SPORTS and ARDAGH METAL 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 ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and ARDAGH METAL.
Diversification Opportunities for JD SPORTS and ARDAGH METAL
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between 9JD and ARDAGH is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL 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 ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of JD SPORTS i.e., JD SPORTS and ARDAGH METAL go up and down completely randomly.
Pair Corralation between JD SPORTS and ARDAGH METAL
Assuming the 90 days horizon JD SPORTS FASH is expected to generate 0.66 times more return on investment than ARDAGH METAL. However, JD SPORTS FASH is 1.51 times less risky than ARDAGH METAL. It trades about 0.08 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.21 per unit of risk. If you would invest 111.00 in JD SPORTS FASH on September 24, 2024 and sell it today you would earn a total of 4.00 from holding JD SPORTS FASH or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| JD SPORTS FASH |
| ARDAGH METAL PACDL |
JD SPORTS and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and ARDAGH METAL
The main advantage of trading using opposite JD SPORTS and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| JD SPORTS vs. Regal Hotels International | JD SPORTS vs. DALATA HOTEL | JD SPORTS vs. InterContinental Hotels Group | JD SPORTS vs. Park Hotels Resorts |
| ARDAGH METAL vs. Electronic Arts | ARDAGH METAL vs. BJs Wholesale Club | ARDAGH METAL vs. National Retail Properties | ARDAGH METAL vs. Meiko Electronics Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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