Correlation Between JD SPORTS and Expedia
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Expedia 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 Expedia 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 Expedia Group, you can compare the effects of market volatilities on JD SPORTS and Expedia 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 Expedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Expedia.
Diversification Opportunities for JD SPORTS and Expedia
Pay attention - limited upside
The 3 months correlation between 9JD and Expedia is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group 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 Expedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expedia Group has no effect on the direction of JD SPORTS i.e., JD SPORTS and Expedia go up and down completely randomly.
Pair Corralation between JD SPORTS and Expedia
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the Expedia. In addition to that, JD SPORTS is 1.21 times more volatile than Expedia Group. It trades about 0.0 of its total potential returns per unit of risk. Expedia Group is currently generating about 0.07 per unit of volatility. If you would invest 8,811 in Expedia Group on August 31, 2024 and sell it today you would earn a total of 8,603 from holding Expedia Group or generate 97.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. Expedia Group
Performance |
| Timeline |
| JD SPORTS FASH |
| Expedia Group |
JD SPORTS and Expedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and Expedia
The main advantage of trading using opposite JD SPORTS and Expedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Expedia 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 Expedia will offset losses from the drop in Expedia's long position.| JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. AOYAMA TRADING | JD SPORTS vs. Global Fashion Group | JD SPORTS vs. Superior Plus Corp |
| Expedia vs. Ming Le Sports | Expedia vs. Sporttotal AG | Expedia vs. Ares Management Corp | Expedia vs. Jupiter Fund Management |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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