Correlation Between JD SPORTS and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Siemens Healthineers 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 Siemens Healthineers 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 Siemens Healthineers AG, you can compare the effects of market volatilities on JD SPORTS and Siemens Healthineers 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 Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Siemens Healthineers.
Diversification Opportunities for JD SPORTS and Siemens Healthineers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 9JD and Siemens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers 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 Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of JD SPORTS i.e., JD SPORTS and Siemens Healthineers go up and down completely randomly.
Pair Corralation between JD SPORTS and Siemens Healthineers
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the Siemens Healthineers. In addition to that, JD SPORTS is 3.46 times more volatile than Siemens Healthineers AG. It trades about -0.14 of its total potential returns per unit of risk. Siemens Healthineers AG is currently generating about 0.15 per unit of volatility. If you would invest 5,200 in Siemens Healthineers AG on September 12, 2024 and sell it today you would earn a total of 210.00 from holding Siemens Healthineers AG or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
JD SPORTS FASH vs. Siemens Healthineers AG
Performance |
| Timeline |
| JD SPORTS FASH |
| Siemens Healthineers |
JD SPORTS and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and Siemens Healthineers
The main advantage of trading using opposite JD SPORTS and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Siemens Healthineers 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 Siemens Healthineers will offset losses from the drop in Siemens Healthineers' long position.| JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. CCC SA | JD SPORTS vs. AOYAMA TRADING | JD SPORTS vs. Superior Plus Corp |
| Siemens Healthineers vs. Align Technology | Siemens Healthineers vs. Superior Plus Corp | Siemens Healthineers vs. SIVERS SEMICONDUCTORS AB | Siemens Healthineers vs. Norsk Hydro ASA |
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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