Correlation Between XTI Aerospace, and JD Sports

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Can any of the company-specific risk be diversified away by investing in both XTI Aerospace, and JD Sports 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 XTI Aerospace, and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTI Aerospace, and JD Sports Fashion, you can compare the effects of market volatilities on XTI Aerospace, and JD Sports 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 XTI Aerospace, with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTI Aerospace, and JD Sports.

Diversification Opportunities for XTI Aerospace, and JD Sports

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between XTI and JDDSF is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding XTI Aerospace, and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion and XTI Aerospace, 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 XTI Aerospace, are associated (or correlated) with JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of XTI Aerospace, i.e., XTI Aerospace, and JD Sports go up and down completely randomly.

Pair Corralation between XTI Aerospace, and JD Sports

Given the investment horizon of 90 days XTI Aerospace, is expected to under-perform the JD Sports. In addition to that, XTI Aerospace, is 2.4 times more volatile than JD Sports Fashion. It trades about -0.02 of its total potential returns per unit of risk. JD Sports Fashion is currently generating about -0.04 per unit of volatility. If you would invest  120.00  in JD Sports Fashion on August 27, 2025 and sell it today you would lose (9.00) from holding JD Sports Fashion or give up 7.5% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

XTI Aerospace,  vs.  JD Sports Fashion

 Performance 
       Timeline  
XTI Aerospace, 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days XTI Aerospace, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JD Sports Fashion 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days JD Sports Fashion has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, JD Sports is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

XTI Aerospace, and JD Sports Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with XTI Aerospace, and JD Sports

The main advantage of trading using opposite XTI Aerospace, and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTI Aerospace, position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.
The idea behind XTI Aerospace, and JD Sports Fashion pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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