Correlation Between JD SPORTS and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and BRAGG GAMING 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 BRAGG GAMING 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 BRAGG GAMING GRP, you can compare the effects of market volatilities on JD SPORTS and BRAGG GAMING 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 BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and BRAGG GAMING.
Diversification Opportunities for JD SPORTS and BRAGG GAMING
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 9JD and BRAGG is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP 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 BRAGG GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRAGG GAMING GRP has no effect on the direction of JD SPORTS i.e., JD SPORTS and BRAGG GAMING go up and down completely randomly.
Pair Corralation between JD SPORTS and BRAGG GAMING
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the BRAGG GAMING. But the stock apears to be less risky and, when comparing its historical volatility, JD SPORTS FASH is 1.54 times less risky than BRAGG GAMING. The stock trades about -0.23 of its potential returns per unit of risk. The BRAGG GAMING GRP is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 450.00 in BRAGG GAMING GRP on September 25, 2024 and sell it today you would lose (122.00) from holding BRAGG GAMING GRP or give up 27.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
JD SPORTS FASH vs. BRAGG GAMING GRP
Performance |
Timeline |
JD SPORTS FASH |
BRAGG GAMING GRP |
JD SPORTS and BRAGG GAMING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JD SPORTS and BRAGG GAMING
The main advantage of trading using opposite JD SPORTS and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, BRAGG GAMING 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 BRAGG GAMING will offset losses from the drop in BRAGG GAMING's long position.JD SPORTS vs. FAST RETAILCOSPHDR 1 | JD SPORTS vs. FAST RETAIL ADR | JD SPORTS vs. Ross Stores | JD SPORTS vs. Stitch Fix |
BRAGG GAMING vs. TITANIUM TRANSPORTGROUP | BRAGG GAMING vs. Yuexiu Transport Infrastructure | BRAGG GAMING vs. JD SPORTS FASH | BRAGG GAMING vs. Platinum Investment Management |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
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 |