Correlation Between First Ship and JD Sports
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and JD Sports Fashion, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and JD Sports.
Diversification Opportunities for First Ship and JD Sports
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and JDSPY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and JD Sports go up and down completely randomly.
Pair Corralation between First Ship and JD Sports
If you would invest 4.00 in First Ship Lease on September 2, 2024 and sell it today you would earn a total of 0.00 from holding First Ship Lease or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
First Ship Lease vs. JD Sports Fashion
Performance |
Timeline |
First Ship Lease |
JD Sports Fashion |
First Ship and JD Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Ship and JD Sports
The main advantage of trading using opposite First Ship and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.First Ship vs. Monster Beverage Corp | First Ship vs. SNDL Inc | First Ship vs. Hudson Pacific Properties | First Ship vs. Mativ Holdings |
JD Sports vs. Ulta Beauty | JD Sports vs. Williams Sonoma | JD Sports vs. Dicks Sporting Goods | JD Sports vs. Best Buy Co |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |