Correlation Between JD Sports and United States
Can any of the company-specific risk be diversified away by investing in both JD Sports and United States 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 JD Sports and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Sports Fashion and United States Steel, you can compare the effects of market volatilities on JD Sports and United States 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 JD Sports with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and United States.
Diversification Opportunities for JD Sports and United States
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JD Sports and United is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel and JD Sports 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 JD Sports Fashion are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of JD Sports i.e., JD Sports and United States go up and down completely randomly.
Pair Corralation between JD Sports and United States
Assuming the 90 days trading horizon JD Sports Fashion is expected to under-perform the United States. In addition to that, JD Sports is 1.02 times more volatile than United States Steel. It trades about -0.07 of its total potential returns per unit of risk. United States Steel is currently generating about -0.02 per unit of volatility. If you would invest 4,972 in United States Steel on December 11, 2024 and sell it today you would lose (1,313) from holding United States Steel or give up 26.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.71% |
| Values | Daily Returns |
JD Sports Fashion vs. United States Steel
Performance |
| Timeline |
| JD Sports Fashion |
| United States Steel |
JD Sports and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and United States
The main advantage of trading using opposite JD Sports and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| JD Sports vs. Primary Health Properties | ||
| JD Sports vs. Silvercorp Metals | ||
| JD Sports vs. Bellevue Healthcare Trust | ||
| JD Sports vs. CNH Industrial NV |
| United States vs. Ecclesiastical Insurance Office | ||
| United States vs. Sabre Insurance Group | ||
| United States vs. Check Point Software | ||
| United States vs. Associated British Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| 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 |