Correlation Between FOX CORP and JD SPORTS

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

Diversification Opportunities for FOX CORP and JD SPORTS

FOX9JDDiversified AwayFOX9JDDiversified Away100%
-0.94
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between FOX and 9JD is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding FOX P B and JD SPORTS FASH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD SPORTS FASH and FOX CORP 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 FOX P B 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 FASH has no effect on the direction of FOX CORP i.e., FOX CORP and JD SPORTS go up and down completely randomly.

Pair Corralation between FOX CORP and JD SPORTS

Assuming the 90 days trading horizon FOX P B is expected to generate 0.53 times more return on investment than JD SPORTS. However, FOX P B is 1.87 times less risky than JD SPORTS. It trades about 0.2 of its potential returns per unit of risk. JD SPORTS FASH is currently generating about -0.16 per unit of risk. If you would invest  3,520  in FOX P B on October 21, 2024 and sell it today you would earn a total of  900.00  from holding FOX P B or generate 25.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

FOX P B  vs.  JD SPORTS FASH

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-100102030
JavaScript chart by amCharts 3.21.15FO5B 9JD
       Timeline  
FOX CORP 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in FOX P B are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FOX CORP reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan363840424446
JD SPORTS FASH 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan11.11.21.31.41.51.6

FOX CORP and JD SPORTS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.62-4.21-2.8-1.390.01.553.124.76.27 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15FO5B 9JD
       Returns  

Pair Trading with FOX CORP and JD SPORTS

The main advantage of trading using opposite FOX CORP and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOX CORP 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's long position.
The idea behind FOX P B and JD SPORTS FASH 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Global Correlations
Find global opportunities by holding instruments from different markets
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world


 

Discover investing ideas

Utilize additional investing modules