Correlation Between Founder Group and JD Sports

Can any of the company-specific risk be diversified away by investing in both Founder Group 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 Founder Group and JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Founder Group Limited and JD Sports Fashion, you can compare the effects of market volatilities on Founder Group 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 Founder Group with a short position of JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Founder Group and JD Sports.

Diversification Opportunities for Founder Group and JD Sports

-0.17

Correlation Coefficient

Founder Group  JD Sports

Good diversification

The 3 months correlation between Founder and JDSPY is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Founder Group Limited 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 Founder Group 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 Founder Group Limited 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 Founder Group i.e., Founder Group and JD Sports go up and down completely randomly.

Pair Corralation between Founder Group and JD Sports

Considering the 90-day investment horizon Founder Group Limited is expected to under-perform the JD Sports. In addition to that, Founder Group is 1.42 times more volatile than JD Sports Fashion. It trades about 0.0 of its total potential returns per unit of risk. JD Sports Fashion is currently generating about 0.05 per unit of volatility. If you would invest  101.00  in JD Sports Fashion on May 2, 2025 and sell it today you would earn a total of  7.00  from holding JD Sports Fashion or generate 6.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Founder Group Limited  vs.  JD Sports Fashion

Founder Group Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Founder Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Founder Group is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

JD Sports Fashion

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JD Sports Fashion are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, JD Sports may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Founder Group and JD Sports

The main advantage of trading using opposite Founder Group and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Founder Group 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 Founder Group Limited 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.