Correlation Between JD SPORTS and Perusahaan Perseroan
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Perusahaan Perseroan 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 Perusahaan Perseroan 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 Perusahaan Perseroan PT, you can compare the effects of market volatilities on JD SPORTS and Perusahaan Perseroan 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 Perusahaan Perseroan. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Perusahaan Perseroan.
Diversification Opportunities for JD SPORTS and Perusahaan Perseroan
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 9JD and Perusahaan is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Perusahaan Perseroan PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perusahaan Perseroan 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 Perusahaan Perseroan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perusahaan Perseroan has no effect on the direction of JD SPORTS i.e., JD SPORTS and Perusahaan Perseroan go up and down completely randomly.
Pair Corralation between JD SPORTS and Perusahaan Perseroan
Assuming the 90 days horizon JD SPORTS FASH is expected to generate 1.71 times more return on investment than Perusahaan Perseroan. However, JD SPORTS is 1.71 times more volatile than Perusahaan Perseroan PT. It trades about -0.01 of its potential returns per unit of risk. Perusahaan Perseroan PT is currently generating about -0.02 per unit of risk. If you would invest 170.00 in JD SPORTS FASH on October 11, 2024 and sell it today you would lose (54.00) from holding JD SPORTS FASH or give up 31.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. Perusahaan Perseroan PT
Performance |
| Timeline |
| JD SPORTS FASH |
| Perusahaan Perseroan |
JD SPORTS and Perusahaan Perseroan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and Perusahaan Perseroan
The main advantage of trading using opposite JD SPORTS and Perusahaan Perseroan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Perusahaan Perseroan 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 Perusahaan Perseroan will offset losses from the drop in Perusahaan Perseroan's long position.| JD SPORTS vs. ALERION CLEANPOWER | JD SPORTS vs. ScanSource | JD SPORTS vs. Cleanaway Waste Management | JD SPORTS vs. Carnegie Clean Energy |
| Perusahaan Perseroan vs. Dave Busters Entertainment | Perusahaan Perseroan vs. JD SPORTS FASH | Perusahaan Perseroan vs. TOWNSQUARE MEDIA INC | Perusahaan Perseroan vs. GREENX METALS LTD |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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