Correlation Between AGRICULTBK HADR25 and JD SPORTS
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR25 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 AGRICULTBK HADR25 and JD SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and JD SPORTS FASH, you can compare the effects of market volatilities on AGRICULTBK HADR25 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 AGRICULTBK HADR25 with a short position of JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR25 and JD SPORTS.
Diversification Opportunities for AGRICULTBK HADR25 and JD SPORTS
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICULTBK and 9JD is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC 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 AGRICULTBK HADR25 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 AGRICULTBK HADR25 YC 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 AGRICULTBK HADR25 i.e., AGRICULTBK HADR25 and JD SPORTS go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR25 and JD SPORTS
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.15 times more return on investment than JD SPORTS. However, AGRICULTBK HADR25 is 1.15 times more volatile than JD SPORTS FASH. It trades about 0.19 of its potential returns per unit of risk. JD SPORTS FASH is currently generating about -0.15 per unit of risk. If you would invest 1,181 in AGRICULTBK HADR25 YC on October 13, 2024 and sell it today you would earn a total of 99.00 from holding AGRICULTBK HADR25 YC or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. JD SPORTS FASH
Performance |
| Timeline |
| AGRICULTBK HADR25 |
| JD SPORTS FASH |
AGRICULTBK HADR25 and JD SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR25 and JD SPORTS
The main advantage of trading using opposite AGRICULTBK HADR25 and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR25 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.| AGRICULTBK HADR25 vs. TOMBADOR IRON LTD | AGRICULTBK HADR25 vs. Mitsubishi Gas Chemical | AGRICULTBK HADR25 vs. SEKISUI CHEMICAL | AGRICULTBK HADR25 vs. X FAB Silicon Foundries |
| JD SPORTS vs. Titan Machinery | JD SPORTS vs. Federal Agricultural Mortgage | JD SPORTS vs. American Homes 4 | JD SPORTS vs. AGRICULTBK HADR25 YC |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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