PDD Holdings Correlations

PDD Stock

USD 104.09 12.40 10.64%

The current 90-days correlation between PDD Holdings and Alibaba Group Holding is 0.68 (i.e., Poor diversification). The correlation of PDD Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

PDD Holdings Correlation With Market

Significant diversification

The correlation between PDD Holdings and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PDD Holdings and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PDD Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.

For information on how to trade PDD Stock refer to our How to Trade PDD Stock guide.

Moving together with PDD Stock

0.76	JD	JD Inc Adr Aggressive Push	Pair Corr
0.76	VIPS	Vipshop Holdings	Pair Corr

Moving against PDD Stock

0.32	DIBS	1StdibsCom	Pair Corr
0.47	KMX	CarMax Inc	Pair Corr
0.43	LITB	LightInTheBox Holding Earnings Call This Week	Pair Corr
0.38	ROST	Ross Stores	Pair Corr
0.34	ZUMZ	Zumiez Inc	Pair Corr

Related Correlations Analysis

	BABA	SE	MELI	VIPS	AMZN	JD	GLBE	BZUN	FTCH
BABA		0.58	0.04	0.97	0.21	0.94	0.27	0.95	0.6	BABA
SE	0.58		-0.28	0.56	0.71	0.75	0.83	0.51	0.82	SE
MELI	0.04	-0.28		-0.04	-0.32	-0.12	-0.25	0.1	-0.25	MELI
VIPS	0.97	0.56	-0.04		0.21	0.9	0.27	0.91	0.55	VIPS
AMZN	0.21	0.71	-0.32	0.21		0.39	0.87	0.08	0.73	AMZN
JD	0.94	0.75	-0.12	0.9	0.39		0.45	0.9	0.79	JD
GLBE	0.27	0.83	-0.25	0.27	0.87	0.45		0.2	0.69	GLBE
BZUN	0.95	0.51	0.1	0.91	0.08	0.9	0.2		0.51	BZUN
FTCH	0.6	0.82	-0.25	0.55	0.73	0.79	0.69	0.51		FTCH
	BABA	SE	MELI	VIPS	AMZN	JD	GLBE	BZUN	FTCH

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

VIPS	+ 0.97	BABA
BZUN	+ 0.95	BABA
JD	+ 0.94	BABA
BZUN	+ 0.91	VIPS
JD	+ 0.9	VIPS
BZUN	+ 0.9	JD

High negative correlations

AMZN	- 0.32	MELI
MELI	- 0.28	SE
FTCH	- 0.25	MELI
GLBE	- 0.25	MELI
JD	- 0.12	MELI
VIPS	- 0.04	MELI

Risk-Adjusted Indicators

There is a big difference between PDD Stock performing well and PDD Holdings Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze PDD Holdings' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
BABA	2.08	0.08	0.02	0.22	2.45	(2.35)	4.82	(4.27)	16.74
SE	1.57	0.52	0.27	2.22	1.33	(1.91)	4.65	(2.50)	12.95
MELI	1.55	(0.11)	0.00	(0.03)	0.00	0.00	2.60	(2.84)	20.82
VIPS	1.97	0.21	0.08	0.37	2.13	(2.59)	5.40	(4.47)	17.40
AMZN	1.40	0.09	0.06	0.16	1.57	(1.48)	2.77	(3.06)	10.38
JD	2.78	0.34	0.09	0.53	3.20	(3.10)	6.76	(6.99)	23.41
GLBE	1.69	0.45	0.24	0.50	1.39	(1.96)	4.70	(2.91)	9.43
BZUN	3.26	0.20	0.04	0.37	3.91	(3.53)	7.67	(6.61)	27.28
FTCH	3.52	0.21	0.07	0.20	3.55	(4.12)	7.30	(5.87)	24.63

PDD Holdings Corporate Management

David Liu	Vice Strategy	Profile
Xin Lim	Investor Officers	Profile
Jianchong Zhu	Sr Counsel	Profile
Jun Liu	Vice Finance	Profile

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