Correlation Between Leroy Seafood and JD Sports

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Leroy Seafood 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 Leroy Seafood and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leroy Seafood Group and JD Sports Fashion, you can compare the effects of market volatilities on Leroy Seafood 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 Leroy Seafood with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leroy Seafood and JD Sports.

Diversification Opportunities for Leroy Seafood and JD Sports

LeroyJD SportsDiversified AwayLeroyJD SportsDiversified Away100%
-0.02
  Correlation Coefficient

Good diversification

The 3 months correlation between Leroy and JD Sports is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Leroy Seafood 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 Leroy Seafood 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 Leroy Seafood 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 Leroy Seafood i.e., Leroy Seafood and JD Sports go up and down completely randomly.

Pair Corralation between Leroy Seafood and JD Sports

Assuming the 90 days trading horizon Leroy Seafood Group is expected to generate 0.52 times more return on investment than JD Sports. However, Leroy Seafood Group is 1.93 times less risky than JD Sports. It trades about 0.09 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.2 per unit of risk. If you would invest  5,040  in Leroy Seafood Group on October 31, 2024 and sell it today you would earn a total of  400.00  from holding Leroy Seafood Group or generate 7.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Leroy Seafood Group  vs.  JD Sports Fashion

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -30-20-100
JavaScript chart by amCharts 3.21.150GM2 JD
       Timeline  
Leroy Seafood Group 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Leroy Seafood Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Leroy Seafood may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan4748495051525354
JD Sports Fashion 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JD Sports Fashion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan8090100110120

Leroy Seafood and JD Sports Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.06-3.79-2.52-1.250.01.252.543.835.126.41 0.050.100.15
JavaScript chart by amCharts 3.21.150GM2 JD
       Returns  

Pair Trading with Leroy Seafood and JD Sports

The main advantage of trading using opposite Leroy Seafood and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leroy Seafood 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.
The idea behind Leroy Seafood Group and JD Sports Fashion pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Stocks Directory
Find actively traded stocks across global markets
Commodity Directory
Find actively traded commodities issued by global exchanges
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume