Correlation Between JD SPORTS and THRACE PLASTICS
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and THRACE PLASTICS 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 THRACE PLASTICS 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 THRACE PLASTICS, you can compare the effects of market volatilities on JD SPORTS and THRACE PLASTICS 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 THRACE PLASTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and THRACE PLASTICS.
Diversification Opportunities for JD SPORTS and THRACE PLASTICS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 9JD and THRACE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and THRACE PLASTICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THRACE PLASTICS 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 THRACE PLASTICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THRACE PLASTICS has no effect on the direction of JD SPORTS i.e., JD SPORTS and THRACE PLASTICS go up and down completely randomly.
Pair Corralation between JD SPORTS and THRACE PLASTICS
Assuming the 90 days horizon JD SPORTS is expected to generate 1.67 times less return on investment than THRACE PLASTICS. In addition to that, JD SPORTS is 1.94 times more volatile than THRACE PLASTICS. It trades about 0.01 of its total potential returns per unit of risk. THRACE PLASTICS is currently generating about 0.02 per unit of volatility. If you would invest 352.00 in THRACE PLASTICS on September 4, 2024 and sell it today you would earn a total of 47.00 from holding THRACE PLASTICS or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
JD SPORTS FASH vs. THRACE PLASTICS
Performance |
| Timeline |
| JD SPORTS FASH |
| THRACE PLASTICS |
JD SPORTS and THRACE PLASTICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and THRACE PLASTICS
The main advantage of trading using opposite JD SPORTS and THRACE PLASTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, THRACE PLASTICS 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 THRACE PLASTICS will offset losses from the drop in THRACE PLASTICS's long position.| JD SPORTS vs. ASURE SOFTWARE | JD SPORTS vs. CyberArk Software | JD SPORTS vs. UPDATE SOFTWARE | JD SPORTS vs. Kaiser Aluminum |
| THRACE PLASTICS vs. BOSTON BEER A | THRACE PLASTICS vs. TYSON FOODS A | THRACE PLASTICS vs. PT Indofood Sukses | THRACE PLASTICS vs. Monster Beverage Corp |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |