Correlation Between JD SPORTS and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Gruppo Mutuionline 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 Gruppo Mutuionline 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 Gruppo Mutuionline SpA, you can compare the effects of market volatilities on JD SPORTS and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Gruppo Mutuionline.
Diversification Opportunities for JD SPORTS and Gruppo Mutuionline
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 9JD and Gruppo is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of JD SPORTS i.e., JD SPORTS and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between JD SPORTS and Gruppo Mutuionline
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the Gruppo Mutuionline. But the stock apears to be less risky and, when comparing its historical volatility, JD SPORTS FASH is 1.29 times less risky than Gruppo Mutuionline. The stock trades about -0.3 of its potential returns per unit of risk. The Gruppo Mutuionline SpA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,625 in Gruppo Mutuionline SpA on October 1, 2024 and sell it today you would lose (30.00) from holding Gruppo Mutuionline SpA or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| JD SPORTS FASH |
| Gruppo Mutuionline SpA |
JD SPORTS and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and Gruppo Mutuionline
The main advantage of trading using opposite JD SPORTS and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| JD SPORTS vs. FAST RETAILCOSPHDR 1 | JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. Stitch Fix | JD SPORTS vs. AOYAMA TRADING |
| Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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