Correlation Between JD SPORTS and CALTAGIRONE EDITORE
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE, you can compare the effects of market volatilities on JD SPORTS and CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and CALTAGIRONE EDITORE.
Diversification Opportunities for JD SPORTS and CALTAGIRONE EDITORE
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 9JD and CALTAGIRONE is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and CALTAGIRONE EDITORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CALTAGIRONE EDITORE has no effect on the direction of JD SPORTS i.e., JD SPORTS and CALTAGIRONE EDITORE go up and down completely randomly.
Pair Corralation between JD SPORTS and CALTAGIRONE EDITORE
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the CALTAGIRONE EDITORE. But the stock apears to be less risky and, when comparing its historical volatility, JD SPORTS FASH is 1.19 times less risky than CALTAGIRONE EDITORE. The stock trades about -0.08 of its potential returns per unit of risk. The CALTAGIRONE EDITORE is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 132.00 in CALTAGIRONE EDITORE on November 7, 2024 and sell it today you would earn a total of 19.00 from holding CALTAGIRONE EDITORE or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
JD SPORTS FASH vs. CALTAGIRONE EDITORE
Performance |
| Timeline |
| JD SPORTS FASH |
| CALTAGIRONE EDITORE |
JD SPORTS and CALTAGIRONE EDITORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and CALTAGIRONE EDITORE
The main advantage of trading using opposite JD SPORTS and CALTAGIRONE EDITORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE will offset losses from the drop in CALTAGIRONE EDITORE's long position.| JD SPORTS vs. NTT DATA | JD SPORTS vs. Gruppo Mutuionline SpA | JD SPORTS vs. DATADOT TECHNOLOGY | JD SPORTS vs. Fidelity National Information |
| CALTAGIRONE EDITORE vs. Apple Inc | CALTAGIRONE EDITORE vs. Apple Inc | CALTAGIRONE EDITORE vs. Apple Inc | CALTAGIRONE EDITORE 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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