Correlation Between JD SPORTS and Schlumberger
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Schlumberger 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 Schlumberger 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 Schlumberger Limited, you can compare the effects of market volatilities on JD SPORTS and Schlumberger 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 Schlumberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Schlumberger.
Diversification Opportunities for JD SPORTS and Schlumberger
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 9JD and Schlumberger is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Schlumberger Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlumberger Limited 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 Schlumberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlumberger Limited has no effect on the direction of JD SPORTS i.e., JD SPORTS and Schlumberger go up and down completely randomly.
Pair Corralation between JD SPORTS and Schlumberger
Assuming the 90 days horizon JD SPORTS FASH is expected to generate 1.51 times more return on investment than Schlumberger. However, JD SPORTS is 1.51 times more volatile than Schlumberger Limited. It trades about 0.01 of its potential returns per unit of risk. Schlumberger Limited is currently generating about 0.0 per unit of risk. If you would invest 137.00 in JD SPORTS FASH on September 3, 2024 and sell it today you would lose (15.00) from holding JD SPORTS FASH or give up 10.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. Schlumberger Limited
Performance |
| Timeline |
| JD SPORTS FASH |
| Schlumberger Limited |
JD SPORTS and Schlumberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and Schlumberger
The main advantage of trading using opposite JD SPORTS and Schlumberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Schlumberger 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 Schlumberger will offset losses from the drop in Schlumberger's long position.| JD SPORTS vs. FAST RETAILCOSPHDR 1 | JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. Ross Stores | JD SPORTS vs. Designer Brands |
| Schlumberger vs. VIAPLAY GROUP AB | Schlumberger vs. Summit Materials | Schlumberger vs. JD SPORTS FASH | Schlumberger vs. Rayonier Advanced Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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