Correlation Between JD Sports and Oasmia Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both JD Sports and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical 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 Oasmia Pharmaceutical AB, you can compare the effects of market volatilities on JD Sports and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Oasmia Pharmaceutical.
Diversification Opportunities for JD Sports and Oasmia Pharmaceutical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JDSPY and Oasmia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Oasmia Pharmaceutical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasmia Pharmaceutical 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 Oasmia Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasmia Pharmaceutical has no effect on the direction of JD Sports i.e., JD Sports and Oasmia Pharmaceutical go up and down completely randomly.
Pair Corralation between JD Sports and Oasmia Pharmaceutical
If you would invest 6.00 in Oasmia Pharmaceutical AB on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Oasmia Pharmaceutical AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.27% |
| Values | Daily Returns |
JD Sports Fashion vs. Oasmia Pharmaceutical AB
Performance |
| Timeline |
| JD Sports Fashion |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JD Sports and Oasmia Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Oasmia Pharmaceutical
The main advantage of trading using opposite JD Sports and Oasmia Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, Oasmia Pharmaceutical 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 Oasmia Pharmaceutical will offset losses from the drop in Oasmia Pharmaceutical's long position.| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
| Oasmia Pharmaceutical vs. Lindblad Expeditions Holdings | Oasmia Pharmaceutical vs. Afya | Oasmia Pharmaceutical vs. Verra Mobility Corp | Oasmia Pharmaceutical vs. The Cheesecake Factory |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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