Correlation Between JD Sports and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both JD Sports and Griffin Mining 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 Griffin Mining 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 Griffin Mining, you can compare the effects of market volatilities on JD Sports and Griffin Mining 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 Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Griffin Mining.
Diversification Opportunities for JD Sports and Griffin Mining
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JD Sports and Griffin is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining 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 Griffin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffin Mining has no effect on the direction of JD Sports i.e., JD Sports and Griffin Mining go up and down completely randomly.
Pair Corralation between JD Sports and Griffin Mining
Assuming the 90 days trading horizon JD Sports Fashion is expected to under-perform the Griffin Mining. In addition to that, JD Sports is 1.26 times more volatile than Griffin Mining. It trades about -0.03 of its total potential returns per unit of risk. Griffin Mining is currently generating about 0.01 per unit of volatility. If you would invest 14,900 in Griffin Mining on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Griffin Mining or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Sports Fashion vs. Griffin Mining
Performance |
| Timeline |
| JD Sports Fashion |
| Griffin Mining |
JD Sports and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Griffin Mining
The main advantage of trading using opposite JD Sports and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, Griffin Mining 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 Griffin Mining will offset losses from the drop in Griffin Mining's long position.| JD Sports vs. Hyundai Motor | JD Sports vs. Toyota Motor Corp | JD Sports vs. SoftBank Group Corp | JD Sports vs. Halyk Bank of |
| Griffin Mining vs. TR Property Investment | Griffin Mining vs. X FAB Silicon Foundries | Griffin Mining vs. Monks Investment Trust | Griffin Mining vs. Hansa Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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