Correlation Between Beowulf Mining and JD Sports
Can any of the company-specific risk be diversified away by investing in both Beowulf 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 Beowulf 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 Beowulf Mining and JD Sports Fashion, you can compare the effects of market volatilities on Beowulf 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 Beowulf Mining with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and JD Sports.
Diversification Opportunities for Beowulf Mining and JD Sports
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beowulf and JD Sports is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining 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 Beowulf 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 Beowulf Mining 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 Beowulf Mining i.e., Beowulf Mining and JD Sports go up and down completely randomly.
Pair Corralation between Beowulf Mining and JD Sports
Assuming the 90 days trading horizon Beowulf Mining is expected to under-perform the JD Sports. In addition to that, Beowulf Mining is 1.65 times more volatile than JD Sports Fashion. It trades about -0.07 of its total potential returns per unit of risk. JD Sports Fashion is currently generating about -0.04 per unit of volatility. If you would invest 17,845 in JD Sports Fashion on November 4, 2024 and sell it today you would lose (8,933) from holding JD Sports Fashion or give up 50.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beowulf Mining vs. JD Sports Fashion
Performance |
| Timeline |
| Beowulf Mining |
| JD Sports Fashion |
Beowulf Mining and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and JD Sports
The main advantage of trading using opposite Beowulf Mining and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf 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.| Beowulf Mining vs. Givaudan SA | Beowulf Mining vs. Antofagasta PLC | Beowulf Mining vs. Ferrexpo PLC | Beowulf Mining vs. Atalaya Mining |
| JD Sports vs. Bytes Technology | JD Sports vs. iShares Physical Silver | JD Sports vs. Spotify Technology SA | JD Sports vs. Auction Technology Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |