Correlation Between Wicket Gaming and JD Sports
Can any of the company-specific risk be diversified away by investing in both Wicket Gaming 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 Wicket Gaming and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wicket Gaming AB and JD Sports Fashion, you can compare the effects of market volatilities on Wicket Gaming 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 Wicket Gaming with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wicket Gaming and JD Sports.
Diversification Opportunities for Wicket Gaming and JD Sports
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wicket and JDSPY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wicket Gaming AB 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 Wicket Gaming 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 Wicket Gaming AB 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 Wicket Gaming i.e., Wicket Gaming and JD Sports go up and down completely randomly.
Pair Corralation between Wicket Gaming and JD Sports
Assuming the 90 days horizon Wicket Gaming AB is expected to under-perform the JD Sports. But the otc stock apears to be less risky and, when comparing its historical volatility, Wicket Gaming AB is 1.16 times less risky than JD Sports. The otc stock trades about -0.05 of its potential returns per unit of risk. The JD Sports Fashion is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 173.00 in JD Sports Fashion on September 5, 2024 and sell it today you would lose (48.00) from holding JD Sports Fashion or give up 27.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
Wicket Gaming AB vs. JD Sports Fashion
Performance |
| Timeline |
| Wicket Gaming AB |
| JD Sports Fashion |
Wicket Gaming and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wicket Gaming and JD Sports
The main advantage of trading using opposite Wicket Gaming and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wicket Gaming 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.| Wicket Gaming vs. Playstudios | Wicket Gaming vs. Doubledown Interactive Co | Wicket Gaming vs. Bragg Gaming Group | Wicket Gaming vs. Golden Matrix Group |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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