Correlation Between JD SPORTS and CRAWFORD +
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and CRAWFORD + 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 CRAWFORD + 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 CRAWFORD A NV, you can compare the effects of market volatilities on JD SPORTS and CRAWFORD + 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 CRAWFORD +. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and CRAWFORD +.
Diversification Opportunities for JD SPORTS and CRAWFORD +
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between 9JD and CRAWFORD is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and CRAWFORD A NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRAWFORD A NV 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 CRAWFORD +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRAWFORD A NV has no effect on the direction of JD SPORTS i.e., JD SPORTS and CRAWFORD + go up and down completely randomly.
Pair Corralation between JD SPORTS and CRAWFORD +
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the CRAWFORD +. But the stock apears to be less risky and, when comparing its historical volatility, JD SPORTS FASH is 1.03 times less risky than CRAWFORD +. The stock trades about -0.03 of its potential returns per unit of risk. The CRAWFORD A NV is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 516.00 in CRAWFORD A NV on November 6, 2024 and sell it today you would earn a total of 594.00 from holding CRAWFORD A NV or generate 115.12% 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. CRAWFORD A NV
Performance |
| Timeline |
| JD SPORTS FASH |
| CRAWFORD A NV |
JD SPORTS and CRAWFORD + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and CRAWFORD +
The main advantage of trading using opposite JD SPORTS and CRAWFORD + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, CRAWFORD + 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 CRAWFORD + will offset losses from the drop in CRAWFORD +'s long position.| JD SPORTS vs. Eurasia Mining Plc | JD SPORTS vs. Endeavour Mining PLC | JD SPORTS vs. MUTUIONLINE | JD SPORTS vs. Yanzhou Coal Mining |
| CRAWFORD + vs. TRAVEL LEISURE DL 01 | CRAWFORD + vs. Fuji Media Holdings | CRAWFORD + vs. Townsquare Media | CRAWFORD + vs. Flutter Entertainment PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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