Correlation Between JD SPORTS and PT Bayan
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and PT Bayan 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 PT Bayan 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 PT Bayan Resources, you can compare the effects of market volatilities on JD SPORTS and PT Bayan 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 PT Bayan. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and PT Bayan.
Diversification Opportunities for JD SPORTS and PT Bayan
Pay attention - limited upside
The 3 months correlation between 9JD and BNB is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and PT Bayan Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bayan Resources 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 PT Bayan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bayan Resources has no effect on the direction of JD SPORTS i.e., JD SPORTS and PT Bayan go up and down completely randomly.
Pair Corralation between JD SPORTS and PT Bayan
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the PT Bayan. In addition to that, JD SPORTS is 1.07 times more volatile than PT Bayan Resources. It trades about -0.16 of its total potential returns per unit of risk. PT Bayan Resources is currently generating about 0.21 per unit of volatility. If you would invest 97.00 in PT Bayan Resources on September 5, 2024 and sell it today you would earn a total of 18.00 from holding PT Bayan Resources or generate 18.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. PT Bayan Resources
Performance |
| Timeline |
| JD SPORTS FASH |
| PT Bayan Resources |
JD SPORTS and PT Bayan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and PT Bayan
The main advantage of trading using opposite JD SPORTS and PT Bayan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, PT Bayan 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 PT Bayan will offset losses from the drop in PT Bayan's long position.| JD SPORTS vs. RYU Apparel | JD SPORTS vs. Titan Machinery | JD SPORTS vs. Granite Construction | JD SPORTS vs. AM EAGLE OUTFITTERS |
| PT Bayan vs. Regions Financial | PT Bayan vs. JD SPORTS FASH | PT Bayan vs. G III Apparel Group | PT Bayan vs. ANTA SPORTS PRODUCT |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance |