Correlation Between Performant Healthcare, and JD Sports

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

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

Diversification Opportunities for Performant Healthcare, and JD Sports

0.34

Correlation Coefficient

Performant Healthcare,  JD Sports

Weak diversification

The 3 months correlation between Performant and JDSPY is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Performant Healthcare, 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 Performant Healthcare, 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 Performant Healthcare, 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 Performant Healthcare, i.e., Performant Healthcare, and JD Sports go up and down completely randomly.

Pair Corralation between Performant Healthcare, and JD Sports

Given the investment horizon of 90 days Performant Healthcare, is expected to generate 1.61 times more return on investment than JD Sports. However, Performant Healthcare, is 1.61 times more volatile than JD Sports Fashion. It trades about 0.06 of its potential returns per unit of risk. JD Sports Fashion is currently generating about 0.0 per unit of risk. If you would invest  313.00  in Performant Healthcare, on June 30, 2025 and sell it today you would earn a total of  460.00  from holding Performant Healthcare, or generate 146.96% return on investment over 90 days.

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

Performant Healthcare,  vs.  JD Sports Fashion

Performant Healthcare,

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Performant Healthcare, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating essential indicators, Performant Healthcare, unveiled solid returns over the last few months and may actually be approaching a breakup point.

JD Sports Fashion

Risk-Adjusted Performance

Weakest

Over the last 90 days JD Sports Fashion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, JD Sports is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Performant Healthcare, and JD Sports

The main advantage of trading using opposite Performant Healthcare, and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performant Healthcare, 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 Performant Healthcare, 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.