Correlation Between Delivery Hero and Jd
Can any of the company-specific risk be diversified away by investing in both Delivery Hero and Jd 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 Delivery Hero and Jd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delivery Hero SE and Jd Com Inc, you can compare the effects of market volatilities on Delivery Hero and Jd 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 Delivery Hero with a short position of Jd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delivery Hero and Jd.
Diversification Opportunities for Delivery Hero and Jd
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delivery and Jd is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Delivery Hero SE and Jd Com Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jd Com Inc and Delivery Hero 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 Delivery Hero SE are associated (or correlated) with Jd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jd Com Inc has no effect on the direction of Delivery Hero i.e., Delivery Hero and Jd go up and down completely randomly.
Pair Corralation between Delivery Hero and Jd
Assuming the 90 days horizon Delivery Hero is expected to generate 7.78 times less return on investment than Jd. But when comparing it to its historical volatility, Delivery Hero SE is 1.07 times less risky than Jd. It trades about 0.0 of its potential returns per unit of risk. Jd Com Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,754 in Jd Com Inc on September 14, 2024 and sell it today you would lose (894.00) from holding Jd Com Inc or give up 32.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delivery Hero SE vs. Jd Com Inc
Performance |
| Timeline |
| Delivery Hero SE |
| Jd Com Inc |
Delivery Hero and Jd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delivery Hero and Jd
The main advantage of trading using opposite Delivery Hero and Jd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delivery Hero position performs unexpectedly, Jd 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 will offset losses from the drop in Jd's long position.| Delivery Hero vs. Phonex Inc | Delivery Hero vs. 1StdibsCom | Delivery Hero vs. Natural Health Trend | Delivery Hero vs. Emerge Commerce |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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