Correlation Between JD SPORTS and FORWARD AIR
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and FORWARD AIR 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 FORWARD AIR 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 FORWARD AIR P, you can compare the effects of market volatilities on JD SPORTS and FORWARD AIR 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 FORWARD AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and FORWARD AIR.
Diversification Opportunities for JD SPORTS and FORWARD AIR
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 9JD and FORWARD is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P 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 FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of JD SPORTS i.e., JD SPORTS and FORWARD AIR go up and down completely randomly.
Pair Corralation between JD SPORTS and FORWARD AIR
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the FORWARD AIR. In addition to that, JD SPORTS is 1.21 times more volatile than FORWARD AIR P. It trades about -0.08 of its total potential returns per unit of risk. FORWARD AIR P is currently generating about -0.02 per unit of volatility. If you would invest 3,420 in FORWARD AIR P on October 25, 2024 and sell it today you would lose (120.00) from holding FORWARD AIR P or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. FORWARD AIR P
Performance |
| Timeline |
| JD SPORTS FASH |
| FORWARD AIR P |
JD SPORTS and FORWARD AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and FORWARD AIR
The main advantage of trading using opposite JD SPORTS and FORWARD AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, FORWARD AIR 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 FORWARD AIR will offset losses from the drop in FORWARD AIR's long position.| JD SPORTS vs. Japan Asia Investment | JD SPORTS vs. Retail Estates NV | JD SPORTS vs. AOYAMA TRADING | JD SPORTS vs. PICKN PAY STORES |
| FORWARD AIR vs. Hitachi Construction Machinery | FORWARD AIR vs. Granite Construction | FORWARD AIR vs. Daito Trust Construction | FORWARD AIR vs. Compagnie Plastic Omnium |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |