Correlation Between ORACLE and JD Sports
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By analyzing existing cross correlation between ORACLE PORATION and JD Sports Fashion, you can compare the effects of market volatilities on ORACLE 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 ORACLE with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORACLE and JD Sports.
Diversification Opportunities for ORACLE and JD Sports
Weak diversification
The 3 months correlation between ORACLE and JDSPY is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ORACLE PORATION 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 ORACLE 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 ORACLE PORATION 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 ORACLE i.e., ORACLE and JD Sports go up and down completely randomly.
Pair Corralation between ORACLE and JD Sports
Assuming the 90 days trading horizon ORACLE PORATION is expected to generate 0.31 times more return on investment than JD Sports. However, ORACLE PORATION is 3.18 times less risky than JD Sports. It trades about 0.13 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.12 per unit of risk. If you would invest 6,923 in ORACLE PORATION on November 30, 2024 and sell it today you would earn a total of 344.00 from holding ORACLE PORATION or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
ORACLE PORATION vs. JD Sports Fashion
Performance |
| Timeline |
| ORACLE PORATION |
| JD Sports Fashion |
ORACLE and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORACLE and JD Sports
The main advantage of trading using opposite ORACLE and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORACLE 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.| ORACLE vs. Western Digital | ORACLE vs. Sotherly Hotels Series | ORACLE vs. Uber Technologies | ORACLE vs. RCI Hospitality Holdings |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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