Correlation Between Nextplat Corp and JD Sports

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

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

Diversification Opportunities for Nextplat Corp and JD Sports

0.14

Correlation Coefficient

Nextplat Corp  JD Sports

Average diversification

The 3 months correlation between Nextplat and JDSPY is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp i.e., Nextplat Corp and JD Sports go up and down completely randomly.

Pair Corralation between Nextplat Corp and JD Sports

Given the investment horizon of 90 days Nextplat Corp is expected to generate 1.58 times more return on investment than JD Sports. However, Nextplat Corp is 1.58 times more volatile than JD Sports Fashion. It trades about 0.05 of its potential returns per unit of risk. JD Sports Fashion is currently generating about 0.07 per unit of risk. If you would invest  80.00  in Nextplat Corp on July 15, 2025 and sell it today you would earn a total of  8.00  from holding Nextplat Corp or generate 10.0% return on investment over 90 days.

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

Nextplat Corp  vs.  JD Sports Fashion

Nextplat Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Nextplat Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Nextplat Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

JD Sports Fashion

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in JD Sports Fashion are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, JD Sports showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nextplat Corp and JD Sports

The main advantage of trading using opposite Nextplat Corp and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp 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 Nextplat Corp 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.