Correlation Between 665859AX2 and JD Sports
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By analyzing existing cross correlation between NTRS 6125 02 NOV 32 and JD Sports Fashion, you can compare the effects of market volatilities on 665859AX2 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 665859AX2 with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of 665859AX2 and JD Sports.
Diversification Opportunities for 665859AX2 and JD Sports
Very good diversification
The 3 months correlation between 665859AX2 and JDDSF is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding NTRS 6125 02 NOV 32 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 665859AX2 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 NTRS 6125 02 NOV 32 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 665859AX2 i.e., 665859AX2 and JD Sports go up and down completely randomly.
Pair Corralation between 665859AX2 and JD Sports
Assuming the 90 days trading horizon NTRS 6125 02 NOV 32 is expected to generate 0.23 times more return on investment than JD Sports. However, NTRS 6125 02 NOV 32 is 4.28 times less risky than JD Sports. It trades about -0.15 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.21 per unit of risk. If you would invest 10,764 in NTRS 6125 02 NOV 32 on September 1, 2024 and sell it today you would lose (298.00) from holding NTRS 6125 02 NOV 32 or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
NTRS 6125 02 NOV 32 vs. JD Sports Fashion
Performance |
| Timeline |
| NTRS 6125 02 |
| JD Sports Fashion |
665859AX2 and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 665859AX2 and JD Sports
The main advantage of trading using opposite 665859AX2 and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 665859AX2 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.| 665859AX2 vs. Viemed Healthcare | 665859AX2 vs. Cumberland Pharmaceuticals | 665859AX2 vs. Smith Douglas Homes | 665859AX2 vs. Teleflex Incorporated |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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