Correlation Between Tianjin Capital and JD Sports
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital 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 Tianjin Capital and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tianjin Capital Environmental and JD Sports Fashion, you can compare the effects of market volatilities on Tianjin Capital 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 Tianjin Capital with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and JD Sports.
Diversification Opportunities for Tianjin Capital and JD Sports
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tianjin and JDSPY is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental 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 Tianjin Capital 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 Tianjin Capital Environmental 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 Tianjin Capital i.e., Tianjin Capital and JD Sports go up and down completely randomly.
Pair Corralation between Tianjin Capital and JD Sports
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 1.29 times more return on investment than JD Sports. However, Tianjin Capital is 1.29 times more volatile than JD Sports Fashion. It trades about 0.07 of its potential returns per unit of risk. JD Sports Fashion is currently generating about 0.02 per unit of risk. If you would invest 8.09 in Tianjin Capital Environmental on August 30, 2024 and sell it today you would earn a total of 29.91 from holding Tianjin Capital Environmental or generate 369.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. JD Sports Fashion
Performance |
| Timeline |
| Tianjin Capital Envi |
| JD Sports Fashion |
Tianjin Capital and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and JD Sports
The main advantage of trading using opposite Tianjin Capital and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital 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.| Tianjin Capital vs. JJill Inc | Tianjin Capital vs. Duluth Holdings | Tianjin Capital vs. Under Armour C | Tianjin Capital vs. Nike 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |