Correlation Between GWILLI FOOD and JD SPORTS
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD 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 GWILLI FOOD and JD SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and JD SPORTS FASH, you can compare the effects of market volatilities on GWILLI FOOD 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 GWILLI FOOD with a short position of JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and JD SPORTS.
Diversification Opportunities for GWILLI FOOD and JD SPORTS
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GWILLI and 9JD is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD i.e., GWILLI FOOD and JD SPORTS go up and down completely randomly.
Pair Corralation between GWILLI FOOD and JD SPORTS
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 1.0 times more return on investment than JD SPORTS. However, GWILLI FOOD is 1.0 times less risky than JD SPORTS. It trades about -0.03 of its potential returns per unit of risk. JD SPORTS FASH is currently generating about -0.04 per unit of risk. If you would invest 1,520 in GWILLI FOOD on October 12, 2024 and sell it today you would lose (20.00) from holding GWILLI FOOD or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
GWILLI FOOD vs. JD SPORTS FASH
Performance |
| Timeline |
| GWILLI FOOD |
| JD SPORTS FASH |
GWILLI FOOD and JD SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and JD SPORTS
The main advantage of trading using opposite GWILLI FOOD and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD 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.| GWILLI FOOD vs. GRIFFIN MINING LTD | GWILLI FOOD vs. SERI INDUSTRIAL EO | GWILLI FOOD vs. Addus HomeCare | GWILLI FOOD vs. Focus Home Interactive |
| JD SPORTS vs. UPDATE SOFTWARE | JD SPORTS vs. PKSHA TECHNOLOGY INC | JD SPORTS vs. SENECA FOODS A | JD SPORTS vs. GWILLI FOOD |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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