Correlation Between JD and ACS Actividades
Can any of the company-specific risk be diversified away by investing in both JD and ACS Actividades 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 JD and ACS Actividades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Inc and ACS Actividades de, you can compare the effects of market volatilities on JD and ACS Actividades 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 JD with a short position of ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD and ACS Actividades.
Diversification Opportunities for JD and ACS Actividades
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JD and ACS is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc and ACS Actividades de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACS Actividades de and JD 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 JD Inc are associated (or correlated) with ACS Actividades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACS Actividades de has no effect on the direction of JD i.e., JD and ACS Actividades go up and down completely randomly.
Pair Corralation between JD and ACS Actividades
Assuming the 90 days horizon JD Inc is expected to under-perform the ACS Actividades. In addition to that, JD is 2.5 times more volatile than ACS Actividades de. It trades about -0.16 of its total potential returns per unit of risk. ACS Actividades de is currently generating about -0.18 per unit of volatility. If you would invest 4,376 in ACS Actividades de on August 23, 2024 and sell it today you would lose (188.00) from holding ACS Actividades de or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Inc vs. ACS Actividades de
Performance |
| Timeline |
| JD Inc |
| ACS Actividades de |
JD and ACS Actividades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD and ACS Actividades
The main advantage of trading using opposite JD and ACS Actividades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD position performs unexpectedly, ACS Actividades 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 ACS Actividades will offset losses from the drop in ACS Actividades' long position.| JD vs. UNIQA Insurance Group | JD vs. Wiener Privatbank SE | JD vs. CNH Industrial NV | JD vs. Erste Group Bank |
| ACS Actividades vs. Universal Music Group | ACS Actividades vs. Erste Group Bank | ACS Actividades vs. AMAG Austria Metall | ACS Actividades vs. Vienna Insurance Group |
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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