Correlation Between JD Sports and SEB SA
Can any of the company-specific risk be diversified away by investing in both JD Sports and SEB SA 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 SEB SA 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 SEB SA, you can compare the effects of market volatilities on JD Sports and SEB SA 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 SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and SEB SA.
Diversification Opportunities for JD Sports and SEB SA
Very weak diversification
The 3 months correlation between JD Sports and SEB is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA 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 SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of JD Sports i.e., JD Sports and SEB SA go up and down completely randomly.
Pair Corralation between JD Sports and SEB SA
Assuming the 90 days trading horizon JD Sports Fashion is expected to under-perform the SEB SA. In addition to that, JD Sports is 1.77 times more volatile than SEB SA. It trades about -0.15 of its total potential returns per unit of risk. SEB SA is currently generating about -0.04 per unit of volatility. If you would invest 9,792 in SEB SA on September 13, 2024 and sell it today you would lose (337.00) from holding SEB SA or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
JD Sports Fashion vs. SEB SA
Performance |
| Timeline |
| JD Sports Fashion |
| SEB SA |
JD Sports and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and SEB SA
The main advantage of trading using opposite JD Sports and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| JD Sports vs. Invesco Physical Silver | JD Sports vs. Beowulf Mining | JD Sports vs. Spirent Communications plc | JD Sports vs. Zoom Video Communications |
| SEB SA vs. Lowland Investment Co | SEB SA vs. Jacquet Metal Service | SEB SA vs. Empire Metals Limited | SEB SA vs. AMG Advanced Metallurgical |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |