Correlation Between JD SPORTS and Illumina
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Illumina 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 Illumina 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 Illumina, you can compare the effects of market volatilities on JD SPORTS and Illumina 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 Illumina. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Illumina.
Diversification Opportunities for JD SPORTS and Illumina
Excellent diversification
The 3 months correlation between 9JD and Illumina is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Illumina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Illumina 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 Illumina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Illumina has no effect on the direction of JD SPORTS i.e., JD SPORTS and Illumina go up and down completely randomly.
Pair Corralation between JD SPORTS and Illumina
Assuming the 90 days horizon JD SPORTS FASH is expected to generate 1.14 times more return on investment than Illumina. However, JD SPORTS is 1.14 times more volatile than Illumina. It trades about 0.01 of its potential returns per unit of risk. Illumina is currently generating about -0.01 per unit of risk. If you would invest 139.00 in JD SPORTS FASH on September 4, 2024 and sell it today you would lose (17.00) from holding JD SPORTS FASH or give up 12.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
JD SPORTS FASH vs. Illumina
Performance |
| Timeline |
| JD SPORTS FASH |
| Illumina |
JD SPORTS and Illumina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and Illumina
The main advantage of trading using opposite JD SPORTS and Illumina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Illumina 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 Illumina will offset losses from the drop in Illumina's long position.| JD SPORTS vs. ASURE SOFTWARE | JD SPORTS vs. CyberArk Software | JD SPORTS vs. UPDATE SOFTWARE | JD SPORTS vs. Kaiser Aluminum |
| Illumina vs. Thermo Fisher Scientific | Illumina vs. Danaher | Illumina vs. Danaher | Illumina vs. SIEMENS HEALTH ADR050 |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |