Correlation Between JD Sports and Eureka Acquisition
Can any of the company-specific risk be diversified away by investing in both JD Sports and Eureka Acquisition 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 Eureka Acquisition 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 Eureka Acquisition Corp, you can compare the effects of market volatilities on JD Sports and Eureka Acquisition 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 Eureka Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Eureka Acquisition.
Diversification Opportunities for JD Sports and Eureka Acquisition
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between JDSPY and Eureka is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Eureka Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eureka Acquisition Corp 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 Eureka Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eureka Acquisition Corp has no effect on the direction of JD Sports i.e., JD Sports and Eureka Acquisition go up and down completely randomly.
Pair Corralation between JD Sports and Eureka Acquisition
Assuming the 90 days horizon JD Sports Fashion is expected to under-perform the Eureka Acquisition. But the pink sheet apears to be less risky and, when comparing its historical volatility, JD Sports Fashion is 32.94 times less risky than Eureka Acquisition. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Eureka Acquisition Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Eureka Acquisition Corp on September 2, 2024 and sell it today you would earn a total of 1,012 from holding Eureka Acquisition Corp or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.59% |
| Values | Daily Returns |
JD Sports Fashion vs. Eureka Acquisition Corp
Performance |
| Timeline |
| JD Sports Fashion |
| Eureka Acquisition Corp |
JD Sports and Eureka Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Eureka Acquisition
The main advantage of trading using opposite JD Sports and Eureka Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, Eureka Acquisition 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 Eureka Acquisition will offset losses from the drop in Eureka Acquisition's long position.| JD Sports vs. Ulta Beauty | JD Sports vs. Williams Sonoma | JD Sports vs. Dicks Sporting Goods | JD Sports vs. Best Buy Co |
| Eureka Acquisition vs. Voyager Acquisition Corp | Eureka Acquisition vs. CO2 Energy Transition | Eureka Acquisition vs. Vine Hill Capital | Eureka Acquisition vs. DUET Acquisition Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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