Correlation Between JD Sports and GoldMining
Can any of the company-specific risk be diversified away by investing in both JD Sports and GoldMining 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 GoldMining 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 GoldMining, you can compare the effects of market volatilities on JD Sports and GoldMining 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 GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and GoldMining.
Diversification Opportunities for JD Sports and GoldMining
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JD Sports and GoldMining is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining 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 GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of JD Sports i.e., JD Sports and GoldMining go up and down completely randomly.
Pair Corralation between JD Sports and GoldMining
Assuming the 90 days trading horizon JD Sports Fashion is expected to under-perform the GoldMining. In addition to that, JD Sports is 1.37 times more volatile than GoldMining. It trades about -0.19 of its total potential returns per unit of risk. GoldMining is currently generating about -0.05 per unit of volatility. If you would invest 123.00 in GoldMining on September 1, 2024 and sell it today you would lose (3.00) from holding GoldMining or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
JD Sports Fashion vs. GoldMining
Performance |
| Timeline |
| JD Sports Fashion |
| GoldMining |
JD Sports and GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and GoldMining
The main advantage of trading using opposite JD Sports and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining's long position.| JD Sports vs. Toyota Motor Corp | JD Sports vs. SoftBank Group Corp | JD Sports vs. OTP Bank Nyrt | JD Sports vs. Las Vegas Sands |
| GoldMining vs. Greenroc Mining PLC | GoldMining vs. Silvercorp Metals | GoldMining vs. Sydbank | GoldMining 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |