Correlation Between JD SPORTS and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT, you can compare the effects of market volatilities on JD SPORTS and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and OFFICE DEPOT.
Diversification Opportunities for JD SPORTS and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 9JD and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of JD SPORTS i.e., JD SPORTS and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between JD SPORTS and OFFICE DEPOT
If you would invest 111.00 in JD SPORTS FASH on September 24, 2024 and sell it today you would earn a total of 4.00 from holding JD SPORTS FASH or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
JD SPORTS FASH vs. OFFICE DEPOT
Performance |
| Timeline |
| JD SPORTS FASH |
| OFFICE DEPOT |
JD SPORTS and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and OFFICE DEPOT
The main advantage of trading using opposite JD SPORTS and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| JD SPORTS vs. Regal Hotels International | JD SPORTS vs. DALATA HOTEL | JD SPORTS vs. InterContinental Hotels Group | JD SPORTS vs. Park Hotels Resorts |
| OFFICE DEPOT vs. STRAYER EDUCATION | OFFICE DEPOT vs. Compugroup Medical SE | OFFICE DEPOT vs. Merit Medical Systems | OFFICE DEPOT vs. MeVis Medical Solutions |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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