Correlation Between JD SPORTS and FIREWEED METALS
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and FIREWEED METALS 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 FIREWEED METALS 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 FIREWEED METALS P, you can compare the effects of market volatilities on JD SPORTS and FIREWEED METALS 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 FIREWEED METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and FIREWEED METALS.
Diversification Opportunities for JD SPORTS and FIREWEED METALS
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between 9JD and FIREWEED is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and FIREWEED METALS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIREWEED METALS 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 FIREWEED METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIREWEED METALS P has no effect on the direction of JD SPORTS i.e., JD SPORTS and FIREWEED METALS go up and down completely randomly.
Pair Corralation between JD SPORTS and FIREWEED METALS
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the FIREWEED METALS. In addition to that, JD SPORTS is 1.44 times more volatile than FIREWEED METALS P. It trades about -0.13 of its total potential returns per unit of risk. FIREWEED METALS P is currently generating about 0.1 per unit of volatility. If you would invest 89.00 in FIREWEED METALS P on September 13, 2024 and sell it today you would earn a total of 5.00 from holding FIREWEED METALS P or generate 5.62% 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. FIREWEED METALS P
Performance |
| Timeline |
| JD SPORTS FASH |
| FIREWEED METALS P |
JD SPORTS and FIREWEED METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and FIREWEED METALS
The main advantage of trading using opposite JD SPORTS and FIREWEED METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, FIREWEED METALS 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 FIREWEED METALS will offset losses from the drop in FIREWEED METALS'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 |
| FIREWEED METALS vs. American Lithium Corp | FIREWEED METALS vs. ADRIATIC METALS LS 013355 | FIREWEED METALS vs. Superior Plus Corp | FIREWEED METALS vs. SIVERS SEMICONDUCTORS AB |
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 CEOs Directory module to screen CEOs from public companies around the world.
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