Correlation Between Yangzijiang Shipbuilding and JD SPORTS
Can any of the company-specific risk be diversified away by investing in both Yangzijiang Shipbuilding 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 Yangzijiang Shipbuilding and JD SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yangzijiang Shipbuilding and JD SPORTS FASH, you can compare the effects of market volatilities on Yangzijiang Shipbuilding 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 Yangzijiang Shipbuilding with a short position of JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangzijiang Shipbuilding and JD SPORTS.
Diversification Opportunities for Yangzijiang Shipbuilding and JD SPORTS
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yangzijiang and 9JD is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Yangzijiang Shipbuilding and JD SPORTS FASH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD SPORTS FASH and Yangzijiang Shipbuilding 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 Yangzijiang Shipbuilding 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 FASH has no effect on the direction of Yangzijiang Shipbuilding i.e., Yangzijiang Shipbuilding and JD SPORTS go up and down completely randomly.
Pair Corralation between Yangzijiang Shipbuilding and JD SPORTS
Assuming the 90 days horizon Yangzijiang Shipbuilding is expected to generate 0.76 times more return on investment than JD SPORTS. However, Yangzijiang Shipbuilding is 1.31 times less risky than JD SPORTS. It trades about 0.08 of its potential returns per unit of risk. JD SPORTS FASH is currently generating about 0.01 per unit of risk. If you would invest 83.00 in Yangzijiang Shipbuilding on September 5, 2024 and sell it today you would earn a total of 99.00 from holding Yangzijiang Shipbuilding or generate 119.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Yangzijiang Shipbuilding vs. JD SPORTS FASH
Performance |
| Timeline |
| Yangzijiang Shipbuilding |
| JD SPORTS FASH |
Yangzijiang Shipbuilding and JD SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangzijiang Shipbuilding and JD SPORTS
The main advantage of trading using opposite Yangzijiang Shipbuilding and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangzijiang Shipbuilding 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's long position.| Yangzijiang Shipbuilding vs. JD SPORTS FASH | Yangzijiang Shipbuilding vs. Microbot Medical | Yangzijiang Shipbuilding vs. SAFETY MEDICAL PROD | Yangzijiang Shipbuilding vs. InPlay Oil Corp |
| JD SPORTS vs. RYU Apparel | JD SPORTS vs. Titan Machinery | JD SPORTS vs. Granite Construction | JD SPORTS vs. AM EAGLE OUTFITTERS |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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