Correlation Between Zinc Media and JD Sports
Can any of the company-specific risk be diversified away by investing in both Zinc Media 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 Zinc Media and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinc Media Group and JD Sports Fashion, you can compare the effects of market volatilities on Zinc Media 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 Zinc Media with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinc Media and JD Sports.
Diversification Opportunities for Zinc Media and JD Sports
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zinc and JD Sports is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Zinc Media Group 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 Zinc Media 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 Zinc Media Group 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 Zinc Media i.e., Zinc Media and JD Sports go up and down completely randomly.
Pair Corralation between Zinc Media and JD Sports
Assuming the 90 days trading horizon Zinc Media Group is expected to generate 0.75 times more return on investment than JD Sports. However, Zinc Media Group is 1.33 times less risky than JD Sports. It trades about 0.31 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.19 per unit of risk. If you would invest 5,150 in Zinc Media Group on October 24, 2024 and sell it today you would earn a total of 700.00 from holding Zinc Media Group or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zinc Media Group vs. JD Sports Fashion
Performance |
| Timeline |
| Zinc Media Group |
| JD Sports Fashion |
Zinc Media and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinc Media and JD Sports
The main advantage of trading using opposite Zinc Media and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinc Media 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.| Zinc Media vs. Vienna Insurance Group | Zinc Media vs. Young Cos Brewery | Zinc Media vs. Kaufman Et Broad | Zinc Media vs. Ecclesiastical Insurance Office |
| JD Sports vs. Oxford Technology 2 | JD Sports vs. Cognizant Technology Solutions | JD Sports vs. Auction Technology Group | JD Sports vs. Games Workshop Group |
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 Directory module to find actively traded commodities issued by global exchanges.
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