Correlation Between JD SPORTS and AUSTEVOLL SEAFOOD
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD, you can compare the effects of market volatilities on JD SPORTS and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and AUSTEVOLL SEAFOOD.
Diversification Opportunities for JD SPORTS and AUSTEVOLL SEAFOOD
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 9JD and AUSTEVOLL is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and AUSTEVOLL SEAFOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSTEVOLL SEAFOOD has no effect on the direction of JD SPORTS i.e., JD SPORTS and AUSTEVOLL SEAFOOD go up and down completely randomly.
Pair Corralation between JD SPORTS and AUSTEVOLL SEAFOOD
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the AUSTEVOLL SEAFOOD. In addition to that, JD SPORTS is 3.46 times more volatile than AUSTEVOLL SEAFOOD. It trades about -0.19 of its total potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about -0.18 per unit of volatility. If you would invest 845.00 in AUSTEVOLL SEAFOOD on September 21, 2024 and sell it today you would lose (39.00) from holding AUSTEVOLL SEAFOOD or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. AUSTEVOLL SEAFOOD
Performance |
| Timeline |
| JD SPORTS FASH |
| AUSTEVOLL SEAFOOD |
JD SPORTS and AUSTEVOLL SEAFOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and AUSTEVOLL SEAFOOD
The main advantage of trading using opposite JD SPORTS and AUSTEVOLL SEAFOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD will offset losses from the drop in AUSTEVOLL SEAFOOD's long position.| JD SPORTS vs. LGI Homes | JD SPORTS vs. American Homes 4 | JD SPORTS vs. X FAB Silicon Foundries | JD SPORTS vs. Haier Smart Home |
| AUSTEVOLL SEAFOOD vs. JD SPORTS FASH | AUSTEVOLL SEAFOOD vs. Universal Entertainment | AUSTEVOLL SEAFOOD vs. GOODYEAR T RUBBER | AUSTEVOLL SEAFOOD vs. Goodyear Tire Rubber |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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