Correlation Between JD and RATH Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both JD and RATH Aktiengesellscha 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 RATH Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Inc and RATH Aktiengesellschaft, you can compare the effects of market volatilities on JD and RATH Aktiengesellscha 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 RATH Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD and RATH Aktiengesellscha.
Diversification Opportunities for JD and RATH Aktiengesellscha
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JD and RATH is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc and RATH Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATH Aktiengesellschaft 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 RATH Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATH Aktiengesellschaft has no effect on the direction of JD i.e., JD and RATH Aktiengesellscha go up and down completely randomly.
Pair Corralation between JD and RATH Aktiengesellscha
Assuming the 90 days horizon JD Inc is expected to generate 1.47 times more return on investment than RATH Aktiengesellscha. However, JD is 1.47 times more volatile than RATH Aktiengesellschaft. It trades about 0.03 of its potential returns per unit of risk. RATH Aktiengesellschaft is currently generating about 0.0 per unit of risk. If you would invest 3,196 in JD Inc on September 12, 2024 and sell it today you would earn a total of 574.00 from holding JD Inc or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
JD Inc vs. RATH Aktiengesellschaft
Performance |
| Timeline |
| JD Inc |
| RATH Aktiengesellschaft |
JD and RATH Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD and RATH Aktiengesellscha
The main advantage of trading using opposite JD and RATH Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD position performs unexpectedly, RATH Aktiengesellscha 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 RATH Aktiengesellscha will offset losses from the drop in RATH Aktiengesellscha's long position.| JD vs. RATH Aktiengesellschaft | JD vs. AT S Austria | JD vs. BAWAG Group AG | JD vs. Semperit Aktiengesellschaft Holding |
| RATH Aktiengesellscha vs. AMAG Austria Metall | RATH Aktiengesellscha vs. Vienna Insurance Group | RATH Aktiengesellscha vs. Addiko Bank AG | RATH Aktiengesellscha vs. UNIQA 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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