Correlation Between JD Sports and Nukkleus
Can any of the company-specific risk be diversified away by investing in both JD Sports and Nukkleus 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 Nukkleus 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 Nukkleus, you can compare the effects of market volatilities on JD Sports and Nukkleus 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 Nukkleus. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Nukkleus.
Diversification Opportunities for JD Sports and Nukkleus
Good diversification
The 3 months correlation between JDDSF and Nukkleus is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Nukkleus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nukkleus 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 Nukkleus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nukkleus has no effect on the direction of JD Sports i.e., JD Sports and Nukkleus go up and down completely randomly.
Pair Corralation between JD Sports and Nukkleus
If you would invest 3.01 in Nukkleus on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Nukkleus or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Sports Fashion vs. Nukkleus
Performance |
| Timeline |
| JD Sports Fashion |
| Nukkleus |
JD Sports and Nukkleus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Nukkleus
The main advantage of trading using opposite JD Sports and Nukkleus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, Nukkleus 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 Nukkleus will offset losses from the drop in Nukkleus' long position.| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
| Nukkleus vs. Ambev SA ADR | Nukkleus vs. Aris Water Solutions | Nukkleus vs. Monster Beverage Corp | Nukkleus vs. PepsiCo |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |