Correlation Between Canlan Ice and JD Sports
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and JD Sports Fashion, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and JD Sports.
Diversification Opportunities for Canlan Ice and JD Sports
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and JDDSF is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports 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 Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and JD Sports go up and down completely randomly.
Pair Corralation between Canlan Ice and JD Sports
Assuming the 90 days horizon Canlan Ice is expected to generate 9.88 times less return on investment than JD Sports. But when comparing it to its historical volatility, Canlan Ice Sports is 43.65 times less risky than JD Sports. It trades about 0.13 of its potential returns per unit of risk. JD Sports Fashion is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 108.00 in JD Sports Fashion on August 24, 2024 and sell it today you would earn a total of 38.00 from holding JD Sports Fashion or generate 35.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. JD Sports Fashion
Performance |
| Timeline |
| Canlan Ice Sports |
| JD Sports Fashion |
Canlan Ice and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and JD Sports
The main advantage of trading using opposite Canlan Ice and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. Morgan Stanley | Canlan Ice vs. Western Acquisition Ventures | Canlan Ice vs. Inflection Point Acquisition | Canlan Ice vs. Nextplat 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Transaction History View history of all your transactions and understand their impact on performance |