Correlation Between Worthington Steel and JD Sports

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

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

Diversification Opportunities for Worthington Steel and JD Sports

0.21

Correlation Coefficient

Worthington Steel  JD Sports

Modest diversification

The 3 months correlation between Worthington and JDSPY is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Worthington Steel 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 Worthington Steel 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 Worthington Steel 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 Worthington Steel i.e., Worthington Steel and JD Sports go up and down completely randomly.

Pair Corralation between Worthington Steel and JD Sports

Allowing for the 90-day total investment horizon Worthington Steel is expected to generate 0.97 times more return on investment than JD Sports. However, Worthington Steel is 1.03 times less risky than JD Sports. It trades about 0.06 of its potential returns per unit of risk. JD Sports Fashion is currently generating about 0.05 per unit of risk. If you would invest  2,951  in Worthington Steel on August 4, 2025 and sell it today you would earn a total of  248.00  from holding Worthington Steel or generate 8.4% return on investment over 90 days.

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

Worthington Steel  vs.  JD Sports Fashion

Worthington Steel

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Worthington Steel are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Worthington Steel may actually be approaching a critical reversion point that can send shares even higher in December 2025.

JD Sports Fashion

Risk-Adjusted Performance

Soft

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 fragile basic indicators, JD Sports may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Worthington Steel and JD Sports

The main advantage of trading using opposite Worthington Steel and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worthington Steel 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 Worthington Steel 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..