Correlation Between JD SPORTS and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on JD SPORTS and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and ANTA SPORTS.
Diversification Opportunities for JD SPORTS and ANTA SPORTS
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between 9JD and ANTA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of JD SPORTS i.e., JD SPORTS and ANTA SPORTS go up and down completely randomly.
Pair Corralation between JD SPORTS and ANTA SPORTS
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the ANTA SPORTS. In addition to that, JD SPORTS is 1.1 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.0 of its total potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.03 per unit of volatility. If you would invest 780.00 in ANTA SPORTS PRODUCT on August 29, 2024 and sell it today you would earn a total of 174.00 from holding ANTA SPORTS PRODUCT or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| JD SPORTS FASH |
| ANTA SPORTS PRODUCT |
JD SPORTS and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and ANTA SPORTS
The main advantage of trading using opposite JD SPORTS and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| JD SPORTS vs. DICKS Sporting Goods | JD SPORTS vs. Sporting Clube de | JD SPORTS vs. Sporttotal AG | JD SPORTS vs. Transportadora de Gas |
| ANTA SPORTS vs. SEALED AIR | ANTA SPORTS vs. SYSTEMAIR AB | ANTA SPORTS vs. HF SINCLAIR P | ANTA SPORTS vs. Enter Air SA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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