Correlation Between JD SPORTS and MOWI ASA
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and MOWI ASA 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 MOWI ASA 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 MOWI ASA SPADR, you can compare the effects of market volatilities on JD SPORTS and MOWI ASA 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 MOWI ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and MOWI ASA.
Diversification Opportunities for JD SPORTS and MOWI ASA
Pay attention - limited upside
The 3 months correlation between 9JD and MOWI is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and MOWI ASA SPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOWI ASA SPADR 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 MOWI ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOWI ASA SPADR has no effect on the direction of JD SPORTS i.e., JD SPORTS and MOWI ASA go up and down completely randomly.
Pair Corralation between JD SPORTS and MOWI ASA
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the MOWI ASA. In addition to that, JD SPORTS is 3.76 times more volatile than MOWI ASA SPADR. It trades about -0.16 of its total potential returns per unit of risk. MOWI ASA SPADR is currently generating about 0.33 per unit of volatility. If you would invest 1,547 in MOWI ASA SPADR on September 4, 2024 and sell it today you would earn a total of 133.00 from holding MOWI ASA SPADR or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. MOWI ASA SPADR
Performance |
| Timeline |
| JD SPORTS FASH |
| MOWI ASA SPADR |
JD SPORTS and MOWI ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and MOWI ASA
The main advantage of trading using opposite JD SPORTS and MOWI ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, MOWI ASA 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 MOWI ASA will offset losses from the drop in MOWI ASA's long position.| JD SPORTS vs. ASURE SOFTWARE | JD SPORTS vs. CyberArk Software | JD SPORTS vs. UPDATE SOFTWARE | JD SPORTS vs. Kaiser Aluminum |
| MOWI ASA vs. REMEDY ENTERTAINMENT OYJ | MOWI ASA vs. JD SPORTS FASH | MOWI ASA vs. Corporate Office Properties | MOWI ASA vs. CITY OFFICE REIT |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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