Correlation Between JD Sports and GRUPO
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By analyzing existing cross correlation between JD Sports Fashion and GRUPO TELEVISA S, you can compare the effects of market volatilities on JD Sports and GRUPO 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 GRUPO. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and GRUPO.
Diversification Opportunities for JD Sports and GRUPO
Weak diversification
The 3 months correlation between JDSPY and GRUPO is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and GRUPO TELEVISA S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO TELEVISA S 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 GRUPO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO TELEVISA S has no effect on the direction of JD Sports i.e., JD Sports and GRUPO go up and down completely randomly.
Pair Corralation between JD Sports and GRUPO
Assuming the 90 days horizon JD Sports Fashion is expected to under-perform the GRUPO. In addition to that, JD Sports is 1.35 times more volatile than GRUPO TELEVISA S. It trades about -0.07 of its total potential returns per unit of risk. GRUPO TELEVISA S is currently generating about 0.01 per unit of volatility. If you would invest 10,088 in GRUPO TELEVISA S on September 3, 2024 and sell it today you would lose (25.00) from holding GRUPO TELEVISA S or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 46.88% |
| Values | Daily Returns |
JD Sports Fashion vs. GRUPO TELEVISA S
Performance |
| Timeline |
| JD Sports Fashion |
| GRUPO TELEVISA S |
JD Sports and GRUPO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and GRUPO
The main advantage of trading using opposite JD Sports and GRUPO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, GRUPO 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 GRUPO will offset losses from the drop in GRUPO's long position.| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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