Correlation Between JD SPORTS and MAGIC SOFTWARE
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and MAGIC SOFTWARE 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 MAGIC SOFTWARE 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 MAGIC SOFTWARE ENTR, you can compare the effects of market volatilities on JD SPORTS and MAGIC SOFTWARE 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 MAGIC SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and MAGIC SOFTWARE.
Diversification Opportunities for JD SPORTS and MAGIC SOFTWARE
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 9JD and MAGIC is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and MAGIC SOFTWARE ENTR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGIC SOFTWARE ENTR 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 MAGIC SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGIC SOFTWARE ENTR has no effect on the direction of JD SPORTS i.e., JD SPORTS and MAGIC SOFTWARE go up and down completely randomly.
Pair Corralation between JD SPORTS and MAGIC SOFTWARE
Assuming the 90 days horizon JD SPORTS FASH is expected to under-perform the MAGIC SOFTWARE. In addition to that, JD SPORTS is 1.03 times more volatile than MAGIC SOFTWARE ENTR. It trades about -0.11 of its total potential returns per unit of risk. MAGIC SOFTWARE ENTR is currently generating about 0.19 per unit of volatility. If you would invest 1,586 in MAGIC SOFTWARE ENTR on September 4, 2025 and sell it today you would earn a total of 514.00 from holding MAGIC SOFTWARE ENTR or generate 32.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD SPORTS FASH vs. MAGIC SOFTWARE ENTR
Performance |
| Timeline |
| JD SPORTS FASH |
| MAGIC SOFTWARE ENTR |
JD SPORTS and MAGIC SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD SPORTS and MAGIC SOFTWARE
The main advantage of trading using opposite JD SPORTS and MAGIC SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, MAGIC SOFTWARE 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 MAGIC SOFTWARE will offset losses from the drop in MAGIC SOFTWARE's long position.| JD SPORTS vs. FAST RETAILCOSPHDR 1 | JD SPORTS vs. Ross Stores | JD SPORTS vs. Genesco | JD SPORTS vs. Stitch Fix |
| MAGIC SOFTWARE vs. OPERA SOFTWARE | MAGIC SOFTWARE vs. COLUMBIA SPORTSWEAR | MAGIC SOFTWARE vs. JD SPORTS FASH | MAGIC SOFTWARE vs. Playmates Toys Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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