Correlation Between JD SPORTS and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES, you can compare the effects of market volatilities on JD SPORTS and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and SINGAPORE AIRLINES.
Diversification Opportunities for JD SPORTS and SINGAPORE AIRLINES
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between 9JD and SINGAPORE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of JD SPORTS i.e., JD SPORTS and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between JD SPORTS and SINGAPORE AIRLINES
Assuming the 90 days horizon JD SPORTS FASH is expected to generate 2.76 times more return on investment than SINGAPORE AIRLINES. However, JD SPORTS is 2.76 times more volatile than SINGAPORE AIRLINES. It trades about 0.08 of its potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.2 per unit of risk. If you would invest 111.00 in JD SPORTS FASH on September 24, 2024 and sell it today you would earn a total of 4.00 from holding JD SPORTS FASH or generate 3.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JD SPORTS FASH vs. SINGAPORE AIRLINES
Performance |
Timeline |
JD SPORTS FASH |
SINGAPORE AIRLINES |
JD SPORTS and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JD SPORTS and SINGAPORE AIRLINES
The main advantage of trading using opposite JD SPORTS and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.JD SPORTS vs. Regal Hotels International | JD SPORTS vs. DALATA HOTEL | JD SPORTS vs. InterContinental Hotels Group | JD SPORTS vs. Park Hotels Resorts |
SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Microsoft |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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