Correlation Between JD SPORTS and ORIX
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and ORIX 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 ORIX 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 ORIX Corporation, you can compare the effects of market volatilities on JD SPORTS and ORIX 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 ORIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and ORIX.
Diversification Opportunities for JD SPORTS and ORIX
Average diversification
The 3 months correlation between 9JD and ORIX is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and ORIX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORIX 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 ORIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORIX has no effect on the direction of JD SPORTS i.e., JD SPORTS and ORIX go up and down completely randomly.
Pair Corralation between JD SPORTS and ORIX
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the ORIX. In addition to that, JD SPORTS is 1.74 times more volatile than ORIX Corporation. It trades about -0.01 of its total potential returns per unit of risk. ORIX Corporation is currently generating about 0.05 per unit of volatility. If you would invest 1,620 in ORIX Corporation on September 12, 2024 and sell it today you would earn a total of 480.00 from holding ORIX Corporation or generate 29.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. ORIX Corp.
Performance |
| Timeline |
| JD SPORTS FASH |
| ORIX |
JD SPORTS and ORIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and ORIX
The main advantage of trading using opposite JD SPORTS and ORIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, ORIX 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 ORIX will offset losses from the drop in ORIX'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 |
| ORIX vs. XLMedia PLC | ORIX vs. PLAYTIKA HOLDING DL 01 | ORIX vs. JD SPORTS FASH | ORIX vs. Tencent Music Entertainment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |