Correlation Between IShares Physical and JD Sports
Can any of the company-specific risk be diversified away by investing in both IShares Physical 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 IShares Physical and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Physical Silver and JD Sports Fashion, you can compare the effects of market volatilities on IShares Physical 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 IShares Physical with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and JD Sports.
Diversification Opportunities for IShares Physical and JD Sports
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and JD Sports is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Silver 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 IShares Physical 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 iShares Physical Silver 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 IShares Physical i.e., IShares Physical and JD Sports go up and down completely randomly.
Pair Corralation between IShares Physical and JD Sports
Assuming the 90 days trading horizon iShares Physical Silver is expected to generate 0.85 times more return on investment than JD Sports. However, iShares Physical Silver is 1.18 times less risky than JD Sports. It trades about 0.02 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 3,062 in iShares Physical Silver on December 10, 2024 and sell it today you would earn a total of 9.00 from holding iShares Physical Silver or generate 0.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
iShares Physical Silver vs. JD Sports Fashion
Performance |
Timeline |
iShares Physical Silver |
JD Sports Fashion |
IShares Physical and JD Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Physical and JD Sports
The main advantage of trading using opposite IShares Physical and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical 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.IShares Physical vs. Kaufman Et Broad | IShares Physical vs. HCA Healthcare | IShares Physical vs. MyHealthChecked Plc | IShares Physical vs. Planet Fitness Cl |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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