Correlation Between JD SPORTS and Hisamitsu Pharmaceutical

Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Hisamitsu Pharmaceutical 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 JD SPORTS and Hisamitsu Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JD SPORTS FASH and Hisamitsu Pharmaceutical Co, you can compare the effects of market volatilities on JD SPORTS and Hisamitsu Pharmaceutical 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 JD SPORTS with a short position of Hisamitsu Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Hisamitsu Pharmaceutical.

Diversification Opportunities for JD SPORTS and Hisamitsu Pharmaceutical

0.0

Correlation Coefficient

JD SPORTS  Hisamitsu Pharmaceutical

Pay attention - limited upside

The 3 months correlation between 9JD and Hisamitsu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Hisamitsu Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisamitsu Pharmaceutical and JD SPORTS 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 JD SPORTS FASH are associated (or correlated) with Hisamitsu Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisamitsu Pharmaceutical has no effect on the direction of JD SPORTS i.e., JD SPORTS and Hisamitsu Pharmaceutical go up and down completely randomly.

Pair Corralation between JD SPORTS and Hisamitsu Pharmaceutical

If you would invest  0.00  in Hisamitsu Pharmaceutical Co on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Hisamitsu Pharmaceutical Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

JD SPORTS FASH  vs.  Hisamitsu Pharmaceutical Co

JD SPORTS FASH

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JD SPORTS FASH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Hisamitsu Pharmaceutical

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hisamitsu Pharmaceutical Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Hisamitsu Pharmaceutical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with JD SPORTS and Hisamitsu Pharmaceutical

The main advantage of trading using opposite JD SPORTS and Hisamitsu Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical will offset losses from the drop in Hisamitsu Pharmaceutical's long position.

The idea behind JD SPORTS FASH and Hisamitsu Pharmaceutical Co 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.