Correlation Between JD Sports and Quantum Medical

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

By analyzing existing cross correlation between JD Sports Fashion and Quantum Medical Transport, you can compare the effects of market volatilities on JD Sports and Quantum Medical 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 Quantum Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Quantum Medical.

Diversification Opportunities for JD Sports and Quantum Medical

0.1

Correlation Coefficient

JD Sports  Quantum Medical

Average diversification

The 3 months correlation between JDSPY and Quantum is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Quantum Medical Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum Medical Transport 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 Fashion are associated (or correlated) with Quantum Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum Medical Transport has no effect on the direction of JD Sports i.e., JD Sports and Quantum Medical go up and down completely randomly.

Pair Corralation between JD Sports and Quantum Medical

Assuming the 90 days horizon JD Sports is expected to generate 157.63 times less return on investment than Quantum Medical. But when comparing it to its historical volatility, JD Sports Fashion is 32.54 times less risky than Quantum Medical. It trades about 0.03 of its potential returns per unit of risk. Quantum Medical Transport is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Quantum Medical Transport on May 17, 2025 and sell it today you would earn a total of  0.01  from holding Quantum Medical Transport or generate 9.223372036854776E16% return on investment over 90 days.

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

JD Sports Fashion  vs.  Quantum Medical Transport

JD Sports Fashion

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JD Sports Fashion are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, JD Sports may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Quantum Medical Transport

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Medical Transport are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Quantum Medical displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JD Sports and Quantum Medical

The main advantage of trading using opposite JD Sports and Quantum Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, Quantum Medical 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 Quantum Medical will offset losses from the drop in Quantum Medical's long position.

The idea behind JD Sports Fashion and Quantum Medical Transport 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.