Correlation Between JD and Bravada Intl
Can any of the company-specific risk be diversified away by investing in both JD and Bravada Intl 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 Bravada Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Inc Adr and Bravada Intl, you can compare the effects of market volatilities on JD and Bravada Intl 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 Bravada Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD and Bravada Intl.
Diversification Opportunities for JD and Bravada Intl
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JD and Bravada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc Adr and Bravada Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bravada Intl 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 Adr are associated (or correlated) with Bravada Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bravada Intl has no effect on the direction of JD i.e., JD and Bravada Intl go up and down completely randomly.
Pair Corralation between JD and Bravada Intl
Allowing for the 90-day total investment horizon JD Inc Adr is expected to generate 0.3 times more return on investment than Bravada Intl. However, JD Inc Adr is 3.35 times less risky than Bravada Intl. It trades about 0.02 of its potential returns per unit of risk. Bravada Intl is currently generating about 0.0 per unit of risk. If you would invest 3,623 in JD Inc Adr on August 31, 2024 and sell it today you would earn a total of 115.00 from holding JD Inc Adr or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
JD Inc Adr vs. Bravada Intl
Performance |
| Timeline |
| JD Inc Adr |
| Bravada Intl |
JD and Bravada Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD and Bravada Intl
The main advantage of trading using opposite JD and Bravada Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD position performs unexpectedly, Bravada Intl 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 Bravada Intl will offset losses from the drop in Bravada Intl's long position.The idea behind JD Inc Adr and Bravada Intl pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Bravada Intl vs. PDD Holdings | Bravada Intl vs. JD Inc Adr | Bravada Intl vs. Baozun Inc | Bravada Intl vs. Global E Online |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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