Correlation Between JD Sports and AMREP
Can any of the company-specific risk be diversified away by investing in both JD Sports and AMREP 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 AMREP 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 AMREP, you can compare the effects of market volatilities on JD Sports and AMREP 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 AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and AMREP.
Diversification Opportunities for JD Sports and AMREP
Excellent diversification
The 3 months correlation between JDDSF and AMREP is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP 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 AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of JD Sports i.e., JD Sports and AMREP go up and down completely randomly.
Pair Corralation between JD Sports and AMREP
If you would invest 146.00 in JD Sports Fashion on September 25, 2024 and sell it today you would earn a total of 0.00 from holding JD Sports Fashion or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
JD Sports Fashion vs. AMREP
Performance |
Timeline |
JD Sports Fashion |
AMREP |
JD Sports and AMREP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JD Sports and AMREP
The main advantage of trading using opposite JD Sports and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.JD Sports vs. Ulta Beauty | JD Sports vs. Best Buy Co | JD Sports vs. Dicks Sporting Goods | JD Sports vs. RH |
AMREP vs. International Consolidated Companies | AMREP vs. Frontera Group | AMREP vs. All American Pet | AMREP vs. XCPCNL Business Services |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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