Correlation Between JINHUI SHIPPING and JD SPORTS
Can any of the company-specific risk be diversified away by investing in both JINHUI SHIPPING 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 JINHUI SHIPPING and JD SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JINHUI SHIPPING and JD SPORTS FASH, you can compare the effects of market volatilities on JINHUI SHIPPING 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 JINHUI SHIPPING with a short position of JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINHUI SHIPPING and JD SPORTS.
Diversification Opportunities for JINHUI SHIPPING and JD SPORTS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JINHUI and 9JD is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding JINHUI SHIPPING 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 JINHUI SHIPPING 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 JINHUI SHIPPING 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 JINHUI SHIPPING i.e., JINHUI SHIPPING and JD SPORTS go up and down completely randomly.
Pair Corralation between JINHUI SHIPPING and JD SPORTS
Assuming the 90 days trading horizon JINHUI SHIPPING is expected to generate 0.47 times more return on investment than JD SPORTS. However, JINHUI SHIPPING is 2.11 times less risky than JD SPORTS. It trades about 0.27 of its potential returns per unit of risk. JD SPORTS FASH is currently generating about -0.16 per unit of risk. If you would invest 50.00 in JINHUI SHIPPING on September 4, 2024 and sell it today you would earn a total of 6.00 from holding JINHUI SHIPPING or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JINHUI SHIPPING vs. JD SPORTS FASH
Performance |
| Timeline |
| JINHUI SHIPPING |
| JD SPORTS FASH |
JINHUI SHIPPING and JD SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JINHUI SHIPPING and JD SPORTS
The main advantage of trading using opposite JINHUI SHIPPING and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JINHUI SHIPPING 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.| JINHUI SHIPPING vs. JD SPORTS FASH | JINHUI SHIPPING vs. Cars Inc | JINHUI SHIPPING vs. Beijing Media | JINHUI SHIPPING vs. Dave Busters Entertainment |
| JD SPORTS vs. ASURE SOFTWARE | JD SPORTS vs. CyberArk Software | JD SPORTS vs. UPDATE SOFTWARE | JD SPORTS vs. Kaiser Aluminum |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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