Correlation Between LOANDEPOT INC and JD SPORTS
Can any of the company-specific risk be diversified away by investing in both LOANDEPOT INC 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 LOANDEPOT INC and JD SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LOANDEPOT INC A and JD SPORTS FASH, you can compare the effects of market volatilities on LOANDEPOT INC 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 LOANDEPOT INC with a short position of JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOANDEPOT INC and JD SPORTS.
Diversification Opportunities for LOANDEPOT INC and JD SPORTS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LOANDEPOT and 9JD is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding LOANDEPOT INC A 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 LOANDEPOT INC 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 LOANDEPOT INC A 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 LOANDEPOT INC i.e., LOANDEPOT INC and JD SPORTS go up and down completely randomly.
Pair Corralation between LOANDEPOT INC and JD SPORTS
Assuming the 90 days horizon LOANDEPOT INC A is expected to generate 1.7 times more return on investment than JD SPORTS. However, LOANDEPOT INC is 1.7 times more volatile than JD SPORTS FASH. It trades about 0.01 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 185.00 in LOANDEPOT INC A on October 11, 2024 and sell it today you would lose (8.00) from holding LOANDEPOT INC A or give up 4.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
LOANDEPOT INC A vs. JD SPORTS FASH
Performance |
Timeline |
LOANDEPOT INC A |
JD SPORTS FASH |
LOANDEPOT INC and JD SPORTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LOANDEPOT INC and JD SPORTS
The main advantage of trading using opposite LOANDEPOT INC and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOANDEPOT INC 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.LOANDEPOT INC vs. JD SPORTS FASH | LOANDEPOT INC vs. VELA TECHNOLPLC LS 0001 | LOANDEPOT INC vs. SIERRA METALS | LOANDEPOT INC vs. Addtech AB |
JD SPORTS vs. FAIR ISAAC | JD SPORTS vs. Brockhaus Capital Management | JD SPORTS vs. Q2M Managementberatung AG | JD SPORTS vs. SYSTEMAIR AB |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |