Correlation Between JD SPORTS and Anheuser-Busch InBev
Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Anheuser-Busch InBev 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 Anheuser-Busch InBev 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 Anheuser Busch InBev SANV, you can compare the effects of market volatilities on JD SPORTS and Anheuser-Busch InBev 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 Anheuser-Busch InBev. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Anheuser-Busch InBev.
Diversification Opportunities for JD SPORTS and Anheuser-Busch InBev
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between 9JD and Anheuser-Busch is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Anheuser Busch InBev SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch InBev 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 Anheuser-Busch InBev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anheuser Busch InBev has no effect on the direction of JD SPORTS i.e., JD SPORTS and Anheuser-Busch InBev go up and down completely randomly.
Pair Corralation between JD SPORTS and Anheuser-Busch InBev
Assuming the 90 days horizon JD SPORTS FASH is expected to generate 3.13 times more return on investment than Anheuser-Busch InBev. However, JD SPORTS is 3.13 times more volatile than Anheuser Busch InBev SANV. It trades about 0.08 of its potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about 0.03 per unit of risk. If you would invest 85.00 in JD SPORTS FASH on April 21, 2025 and sell it today you would earn a total of 11.00 from holding JD SPORTS FASH or generate 12.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JD SPORTS FASH vs. Anheuser Busch InBev SANV
Performance |
Timeline |
JD SPORTS FASH |
Anheuser Busch InBev |
JD SPORTS and Anheuser-Busch InBev Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JD SPORTS and Anheuser-Busch InBev
The main advantage of trading using opposite JD SPORTS and Anheuser-Busch InBev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Anheuser-Busch InBev 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 Anheuser-Busch InBev will offset losses from the drop in Anheuser-Busch InBev's long position.JD SPORTS vs. STMicroelectronics NV | JD SPORTS vs. ARROW ELECTRONICS | JD SPORTS vs. TT Electronics PLC | JD SPORTS vs. Perdoceo Education |
Anheuser-Busch InBev vs. Carsales | Anheuser-Busch InBev vs. Sabre Insurance Group | Anheuser-Busch InBev vs. INSURANCE AUST GRP | Anheuser-Busch InBev vs. Sun Art Retail |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Money Managers Screen money managers from public funds and ETFs managed around the world |