Correlation Between Savers Value and JD Sports
Can any of the company-specific risk be diversified away by investing in both Savers Value and JD Sports 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 Savers Value and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savers Value Village, and JD Sports Fashion, you can compare the effects of market volatilities on Savers Value and JD Sports 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 Savers Value with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savers Value and JD Sports.
Diversification Opportunities for Savers Value and JD Sports
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Savers and JDSPY is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Savers Value Village, and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion and Savers Value 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 Savers Value Village, are associated (or correlated) with JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Savers Value i.e., Savers Value and JD Sports go up and down completely randomly.
Pair Corralation between Savers Value and JD Sports
Considering the 90-day investment horizon Savers Value Village, is expected to generate 0.44 times more return on investment than JD Sports. However, Savers Value Village, is 2.26 times less risky than JD Sports. It trades about 0.07 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.05 per unit of risk. If you would invest 970.00 in Savers Value Village, on September 13, 2024 and sell it today you would earn a total of 35.00 from holding Savers Value Village, or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Savers Value Village, vs. JD Sports Fashion
Performance |
| Timeline |
| Savers Value Village, |
| JD Sports Fashion |
Savers Value and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Savers Value and JD Sports
The main advantage of trading using opposite Savers Value and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savers Value position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Savers Value vs. Chiba Bank Ltd | Savers Value vs. Glacier Bancorp | Savers Value vs. Alvarium Tiedemann Holdings | Savers Value vs. Nasdaq Inc |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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