Correlation Between Healthlead Public and JD Food
Can any of the company-specific risk be diversified away by investing in both Healthlead Public and JD Food 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 Healthlead Public and JD Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthlead Public and JD Food PCL, you can compare the effects of market volatilities on Healthlead Public and JD Food 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 Healthlead Public with a short position of JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthlead Public and JD Food.
Diversification Opportunities for Healthlead Public and JD Food
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Healthlead and JDF is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Healthlead Public and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL and Healthlead Public 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 Healthlead Public are associated (or correlated) with JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of Healthlead Public i.e., Healthlead Public and JD Food go up and down completely randomly.
Pair Corralation between Healthlead Public and JD Food
Assuming the 90 days horizon Healthlead Public is expected to under-perform the JD Food. In addition to that, Healthlead Public is 1.02 times more volatile than JD Food PCL. It trades about -0.1 of its total potential returns per unit of risk. JD Food PCL is currently generating about -0.09 per unit of volatility. If you would invest 276.00 in JD Food PCL on September 3, 2024 and sell it today you would lose (72.00) from holding JD Food PCL or give up 26.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthlead Public vs. JD Food PCL
Performance |
| Timeline |
| Healthlead Public |
| JD Food PCL |
Healthlead Public and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthlead Public and JD Food
The main advantage of trading using opposite Healthlead Public and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthlead Public position performs unexpectedly, JD Food 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 Food will offset losses from the drop in JD Food's long position.| Healthlead Public vs. II Group Public | Healthlead Public vs. Dohome Public | Healthlead Public vs. Humanica Public | Healthlead Public vs. Jay Mart Public |
| JD Food vs. Nova Organic PCL | JD Food vs. TISCO Financial Group | JD Food vs. Thai Coating Industrial | JD Food vs. Central Retail |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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