Correlation Between JD Sports and GLOBAL
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By analyzing existing cross correlation between JD Sports Fashion and GLOBAL PAYMENTS INC, you can compare the effects of market volatilities on JD Sports and GLOBAL 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 GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and GLOBAL.
Diversification Opportunities for JD Sports and GLOBAL
Poor diversification
The 3 months correlation between JDSPY and GLOBAL is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS INC 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 GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL PAYMENTS INC has no effect on the direction of JD Sports i.e., JD Sports and GLOBAL go up and down completely randomly.
Pair Corralation between JD Sports and GLOBAL
Assuming the 90 days horizon JD Sports Fashion is expected to under-perform the GLOBAL. In addition to that, JD Sports is 4.54 times more volatile than GLOBAL PAYMENTS INC. It trades about -0.06 of its total potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.21 per unit of volatility. If you would invest 8,915 in GLOBAL PAYMENTS INC on September 12, 2024 and sell it today you would lose (531.00) from holding GLOBAL PAYMENTS INC or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Sports Fashion vs. GLOBAL PAYMENTS INC
Performance |
| Timeline |
| JD Sports Fashion |
| GLOBAL PAYMENTS INC |
JD Sports and GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and GLOBAL
The main advantage of trading using opposite JD Sports and GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, GLOBAL 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 GLOBAL will offset losses from the drop in GLOBAL's long position.| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
| GLOBAL vs. AEP TEX INC | GLOBAL vs. US BANK NATIONAL | GLOBAL vs. Applied Blockchain | GLOBAL vs. Sprott Focus Trust |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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