Correlation Between Eastinco Mining and JD Sports
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and JD Sports 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 Eastinco Mining and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastinco Mining Exploration and JD Sports Fashion, you can compare the effects of market volatilities on Eastinco Mining and JD Sports 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 Eastinco Mining with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and JD Sports.
Diversification Opportunities for Eastinco Mining and JD Sports
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastinco and JD Sports is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion and Eastinco Mining 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 Eastinco Mining Exploration are associated (or correlated) with JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and JD Sports go up and down completely randomly.
Pair Corralation between Eastinco Mining and JD Sports
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 0.18 times more return on investment than JD Sports. However, Eastinco Mining Exploration is 5.46 times less risky than JD Sports. It trades about 0.41 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.18 per unit of risk. If you would invest 4,900 in Eastinco Mining Exploration on September 4, 2024 and sell it today you would earn a total of 350.00 from holding Eastinco Mining Exploration or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. JD Sports Fashion
Performance |
| Timeline |
| Eastinco Mining Expl |
| JD Sports Fashion |
Eastinco Mining and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and JD Sports
The main advantage of trading using opposite Eastinco Mining and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Atalaya Mining | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Amaroq Minerals |
| JD Sports vs. Check Point Software | JD Sports vs. Microchip Technology | JD Sports vs. Roper Technologies | JD Sports vs. Raytheon Technologies 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |