Correlation Between JD Sports and MBGGR

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

By analyzing existing cross correlation between JD Sports Fashion and MBGGR 35 03 AUG 25, you can compare the effects of market volatilities on JD Sports and MBGGR 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 MBGGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and MBGGR.

Diversification Opportunities for JD Sports and MBGGR

-0.67

Correlation Coefficient

JD Sports  MBGGR

Excellent diversification

The 3 months correlation between JDDSF and MBGGR is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and MBGGR 35 03 AUG 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBGGR 35 03 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 Fashion are associated (or correlated) with MBGGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBGGR 35 03 has no effect on the direction of JD Sports i.e., JD Sports and MBGGR go up and down completely randomly.

Pair Corralation between JD Sports and MBGGR

Assuming the 90 days horizon JD Sports Fashion is expected to generate 8.12 times more return on investment than MBGGR. However, JD Sports is 8.12 times more volatile than MBGGR 35 03 AUG 25. It trades about 0.03 of its potential returns per unit of risk. MBGGR 35 03 AUG 25 is currently generating about -0.05 per unit of risk. If you would invest  135.00  in JD Sports Fashion on October 9, 2024 and sell it today you would earn a total of  11.00  from holding JD Sports Fashion or generate 8.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	31.98%
Values	Daily Returns

JD Sports Fashion  vs.  MBGGR 35 03 AUG 25

JD Sports Fashion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JD Sports Fashion has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, JD Sports is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

MBGGR 35 03

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MBGGR 35 03 AUG 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for MBGGR 35 03 AUG 25 investors.

Pair Trading with JD Sports and MBGGR

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

The idea behind JD Sports Fashion and MBGGR 35 03 AUG 25 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.