Correlation Between JD SPORTS and FAST RETAILCOSPHDR
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR 1, you can compare the effects of market volatilities on JD SPORTS and FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and FAST RETAILCOSPHDR.
Diversification Opportunities for JD SPORTS and FAST RETAILCOSPHDR
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 9JD and FAST is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and FAST RETAILCOSPHDR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAILCOSPHDR has no effect on the direction of JD SPORTS i.e., JD SPORTS and FAST RETAILCOSPHDR go up and down completely randomly.
Pair Corralation between JD SPORTS and FAST RETAILCOSPHDR
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the FAST RETAILCOSPHDR. But the stock apears to be less risky and, when comparing its historical volatility, JD SPORTS FASH is 1.46 times less risky than FAST RETAILCOSPHDR. The stock trades about -0.11 of its potential returns per unit of risk. The FAST RETAILCOSPHDR 1 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 274.00 in FAST RETAILCOSPHDR 1 on September 3, 2024 and sell it today you would earn a total of 22.00 from holding FAST RETAILCOSPHDR 1 or generate 8.03% 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. FAST RETAILCOSPHDR 1
Performance |
| Timeline |
| JD SPORTS FASH |
| FAST RETAILCOSPHDR |
JD SPORTS and FAST RETAILCOSPHDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and FAST RETAILCOSPHDR
The main advantage of trading using opposite JD SPORTS and FAST RETAILCOSPHDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR will offset losses from the drop in FAST RETAILCOSPHDR's long position.| JD SPORTS vs. FAST RETAILCOSPHDR 1 | JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. Ross Stores | JD SPORTS vs. Designer Brands |
| FAST RETAILCOSPHDR vs. FAST RETAIL ADR | FAST RETAILCOSPHDR vs. Ross Stores | FAST RETAILCOSPHDR vs. Designer Brands | FAST RETAILCOSPHDR vs. Genesco |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |