Correlation Between JD SPORTS and Semperit Aktiengesellscha

Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Semperit Aktiengesellscha 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 Semperit Aktiengesellscha 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 Semperit Aktiengesellschaft Holding, you can compare the effects of market volatilities on JD SPORTS and Semperit Aktiengesellscha 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 Semperit Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Semperit Aktiengesellscha.

Diversification Opportunities for JD SPORTS and Semperit Aktiengesellscha

-0.87

Correlation Coefficient

JD SPORTS  Semperit Aktiengesellscha

Pay attention - limited upside

The 3 months correlation between 9JD and Semperit is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Semperit Aktiengesellschaft Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semperit Aktiengesellscha 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 Semperit Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semperit Aktiengesellscha has no effect on the direction of JD SPORTS i.e., JD SPORTS and Semperit Aktiengesellscha go up and down completely randomly.

Pair Corralation between JD SPORTS and Semperit Aktiengesellscha

Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the Semperit Aktiengesellscha. In addition to that, JD SPORTS is 1.94 times more volatile than Semperit Aktiengesellschaft Holding. It trades about -0.15 of its total potential returns per unit of risk. Semperit Aktiengesellschaft Holding is currently generating about 0.19 per unit of volatility. If you would invest  1,188  in Semperit Aktiengesellschaft Holding on December 20, 2024 and sell it today you would earn a total of  226.00  from holding Semperit Aktiengesellschaft Holding or generate 19.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

JD SPORTS FASH  vs.  Semperit Aktiengesellschaft Ho

JD SPORTS FASH

Risk-Adjusted Performance

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 unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Semperit Aktiengesellscha

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Semperit Aktiengesellschaft Holding are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Semperit Aktiengesellscha exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JD SPORTS and Semperit Aktiengesellscha

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

The idea behind JD SPORTS FASH and Semperit Aktiengesellschaft Holding 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..