Correlation Between J Sainsbury and J Sainsbury
Can any of the company-specific risk be diversified away by investing in both J Sainsbury and J Sainsbury 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 J Sainsbury and J Sainsbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Sainsbury PLC and J Sainsbury plc, you can compare the effects of market volatilities on J Sainsbury and J Sainsbury 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 J Sainsbury with a short position of J Sainsbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Sainsbury and J Sainsbury.
Diversification Opportunities for J Sainsbury and J Sainsbury
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JSAIY and JSNSF is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding J Sainsbury PLC and J Sainsbury plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Sainsbury plc and J Sainsbury 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 J Sainsbury PLC are associated (or correlated) with J Sainsbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Sainsbury plc has no effect on the direction of J Sainsbury i.e., J Sainsbury and J Sainsbury go up and down completely randomly.
Pair Corralation between J Sainsbury and J Sainsbury
Assuming the 90 days horizon J Sainsbury PLC is expected to generate 0.31 times more return on investment than J Sainsbury. However, J Sainsbury PLC is 3.19 times less risky than J Sainsbury. It trades about -0.22 of its potential returns per unit of risk. J Sainsbury plc is currently generating about -0.13 per unit of risk. If you would invest 1,400 in J Sainsbury PLC on November 3, 2024 and sell it today you would lose (125.00) from holding J Sainsbury PLC or give up 8.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Sainsbury PLC vs. J Sainsbury plc
Performance |
| Timeline |
| J Sainsbury PLC |
| J Sainsbury plc |
J Sainsbury and J Sainsbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Sainsbury and J Sainsbury
The main advantage of trading using opposite J Sainsbury and J Sainsbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Sainsbury position performs unexpectedly, J Sainsbury 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 J Sainsbury will offset losses from the drop in J Sainsbury's long position.| J Sainsbury vs. Kesko Oyj ADR | J Sainsbury vs. Om Holdings International | J Sainsbury vs. Tesco PLC | J Sainsbury vs. Carrefour SA |
| J Sainsbury vs. Kesko Oyj ADR | J Sainsbury vs. Om Holdings International | J Sainsbury vs. Carrefour SA PK | J Sainsbury vs. Carrefour SA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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