Correlation Between JD SPORTS and Amadeus IT
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Amadeus IT 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 Amadeus IT 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 Amadeus IT Group, you can compare the effects of market volatilities on JD SPORTS and Amadeus IT 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 Amadeus IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Amadeus IT.
Diversification Opportunities for JD SPORTS and Amadeus IT
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 9JD and Amadeus is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Amadeus IT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amadeus IT Group 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 Amadeus IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amadeus IT Group has no effect on the direction of JD SPORTS i.e., JD SPORTS and Amadeus IT go up and down completely randomly.
Pair Corralation between JD SPORTS and Amadeus IT
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the Amadeus IT. In addition to that, JD SPORTS is 1.8 times more volatile than Amadeus IT Group. It trades about -0.12 of its total potential returns per unit of risk. Amadeus IT Group is currently generating about -0.12 per unit of volatility. If you would invest 7,090 in Amadeus IT Group on August 31, 2025 and sell it today you would lose (790.00) from holding Amadeus IT Group or give up 11.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. Amadeus IT Group
Performance |
| Timeline |
| JD SPORTS FASH |
| Amadeus IT Group |
JD SPORTS and Amadeus IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and Amadeus IT
The main advantage of trading using opposite JD SPORTS and Amadeus IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Amadeus IT 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 Amadeus IT will offset losses from the drop in Amadeus IT's long position.| JD SPORTS vs. Pebblebrook Hotel Trust | JD SPORTS vs. Hyatt Hotels | JD SPORTS vs. MHP Hotel AG | JD SPORTS vs. InterContinental Hotels Group |
| Amadeus IT vs. FIREWEED METALS P | Amadeus IT vs. KINGBOARD CHEMICAL | Amadeus IT vs. Kaiser Aluminum | Amadeus IT vs. Mitsubishi Gas Chemical |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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