Correlation Between JD Sports and Mobile Infrastructure
Can any of the company-specific risk be diversified away by investing in both JD Sports and Mobile Infrastructure 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 Mobile Infrastructure 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 Mobile Infrastructure, you can compare the effects of market volatilities on JD Sports and Mobile Infrastructure 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 Mobile Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Mobile Infrastructure.
Diversification Opportunities for JD Sports and Mobile Infrastructure
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between JDDSF and Mobile is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Mobile Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Infrastructure 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 Mobile Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Infrastructure has no effect on the direction of JD Sports i.e., JD Sports and Mobile Infrastructure go up and down completely randomly.
Pair Corralation between JD Sports and Mobile Infrastructure
Assuming the 90 days horizon JD Sports Fashion is expected to under-perform the Mobile Infrastructure. But the pink sheet apears to be less risky and, when comparing its historical volatility, JD Sports Fashion is 3.39 times less risky than Mobile Infrastructure. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Mobile Infrastructure is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,133 in Mobile Infrastructure on September 12, 2024 and sell it today you would lose (803.00) from holding Mobile Infrastructure or give up 70.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
JD Sports Fashion vs. Mobile Infrastructure
Performance |
| Timeline |
| JD Sports Fashion |
| Mobile Infrastructure |
JD Sports and Mobile Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Mobile Infrastructure
The main advantage of trading using opposite JD Sports and Mobile Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, Mobile Infrastructure 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 Mobile Infrastructure will offset losses from the drop in Mobile Infrastructure's long position.| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
| Mobile Infrastructure vs. Sonos Inc | Mobile Infrastructure vs. Rackspace Technology | Mobile Infrastructure vs. Q2 Holdings | Mobile Infrastructure vs. IPG Photonics |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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