Correlation Between JD SPORTS and BROOKFIELD
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and BROOKFIELD 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 BROOKFIELD 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 BROOKFIELD P CLA, you can compare the effects of market volatilities on JD SPORTS and BROOKFIELD 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 BROOKFIELD. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and BROOKFIELD.
Diversification Opportunities for JD SPORTS and BROOKFIELD
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 9JD and BROOKFIELD is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and BROOKFIELD P CLA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROOKFIELD P CLA 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 BROOKFIELD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROOKFIELD P CLA has no effect on the direction of JD SPORTS i.e., JD SPORTS and BROOKFIELD go up and down completely randomly.
Pair Corralation between JD SPORTS and BROOKFIELD
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the BROOKFIELD. In addition to that, JD SPORTS is 2.61 times more volatile than BROOKFIELD P CLA. It trades about -0.13 of its total potential returns per unit of risk. BROOKFIELD P CLA is currently generating about 0.1 per unit of volatility. If you would invest 5,460 in BROOKFIELD P CLA on September 13, 2024 and sell it today you would earn a total of 180.00 from holding BROOKFIELD P CLA or generate 3.3% 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. BROOKFIELD P CLA
Performance |
| Timeline |
| JD SPORTS FASH |
| BROOKFIELD P CLA |
JD SPORTS and BROOKFIELD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and BROOKFIELD
The main advantage of trading using opposite JD SPORTS and BROOKFIELD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, BROOKFIELD 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 BROOKFIELD will offset losses from the drop in BROOKFIELD's long position.| JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. CCC SA | JD SPORTS vs. AOYAMA TRADING | JD SPORTS vs. Superior Plus Corp |
| BROOKFIELD vs. CANASIL RESOURCES | BROOKFIELD vs. Gossan Resources | BROOKFIELD vs. DevEx Resources Limited | BROOKFIELD vs. KTL GLOBAL |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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