Correlation Between JD SPORTS and ANDREW PELLER
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and ANDREW PELLER 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 ANDREW PELLER 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 ANDREW PELLER LTD, you can compare the effects of market volatilities on JD SPORTS and ANDREW PELLER 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 ANDREW PELLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and ANDREW PELLER.
Diversification Opportunities for JD SPORTS and ANDREW PELLER
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 9JD and ANDREW is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and ANDREW PELLER LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANDREW PELLER 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 ANDREW PELLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANDREW PELLER LTD has no effect on the direction of JD SPORTS i.e., JD SPORTS and ANDREW PELLER go up and down completely randomly.
Pair Corralation between JD SPORTS and ANDREW PELLER
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the ANDREW PELLER. In addition to that, JD SPORTS is 1.71 times more volatile than ANDREW PELLER LTD. It trades about -0.14 of its total potential returns per unit of risk. ANDREW PELLER LTD is currently generating about -0.1 per unit of volatility. If you would invest 286.00 in ANDREW PELLER LTD on September 13, 2024 and sell it today you would lose (24.00) from holding ANDREW PELLER LTD or give up 8.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. ANDREW PELLER LTD
Performance |
| Timeline |
| JD SPORTS FASH |
| ANDREW PELLER LTD |
JD SPORTS and ANDREW PELLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and ANDREW PELLER
The main advantage of trading using opposite JD SPORTS and ANDREW PELLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, ANDREW PELLER 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 ANDREW PELLER will offset losses from the drop in ANDREW PELLER's long position.| JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. CCC SA | JD SPORTS vs. AOYAMA TRADING | JD SPORTS vs. Superior Plus Corp |
| ANDREW PELLER vs. Astral Foods Limited | ANDREW PELLER vs. USWE SPORTS AB | ANDREW PELLER vs. SCIENCE IN SPORT | ANDREW PELLER vs. JD SPORTS FASH |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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