Correlation Between JD SPORTS and DATANG INTL
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and DATANG INTL 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 DATANG INTL 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 DATANG INTL POW, you can compare the effects of market volatilities on JD SPORTS and DATANG INTL 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 DATANG INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and DATANG INTL.
Diversification Opportunities for JD SPORTS and DATANG INTL
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 9JD and DATANG is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and DATANG INTL POW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATANG INTL POW 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 DATANG INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATANG INTL POW has no effect on the direction of JD SPORTS i.e., JD SPORTS and DATANG INTL go up and down completely randomly.
Pair Corralation between JD SPORTS and DATANG INTL
Assuming the 90 days horizon JD SPORTS FASH is expected to generate 0.9 times more return on investment than DATANG INTL. However, JD SPORTS FASH is 1.11 times less risky than DATANG INTL. It trades about -0.02 of its potential returns per unit of risk. DATANG INTL POW is currently generating about -0.03 per unit of risk. If you would invest 132.00 in JD SPORTS FASH on October 7, 2024 and sell it today you would lose (19.00) from holding JD SPORTS FASH or give up 14.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. DATANG INTL POW
Performance |
| Timeline |
| JD SPORTS FASH |
| DATANG INTL POW |
JD SPORTS and DATANG INTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and DATANG INTL
The main advantage of trading using opposite JD SPORTS and DATANG INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, DATANG INTL 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 DATANG INTL will offset losses from the drop in DATANG INTL's long position.| JD SPORTS vs. Charter Communications | JD SPORTS vs. DALATA HOTEL | JD SPORTS vs. Geely Automobile Holdings | JD SPORTS vs. Dalata Hotel Group |
| DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stocks Directory Find actively traded stocks across global markets |