Correlation Between JD and SunCar Technology
Can any of the company-specific risk be diversified away by investing in both JD and SunCar Technology 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 SunCar Technology 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 SunCar Technology Group, you can compare the effects of market volatilities on JD and SunCar Technology 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 SunCar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD and SunCar Technology.
Diversification Opportunities for JD and SunCar Technology
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JD and SunCar is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc Adr and SunCar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunCar Technology 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 SunCar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunCar Technology has no effect on the direction of JD i.e., JD and SunCar Technology go up and down completely randomly.
Pair Corralation between JD and SunCar Technology
Allowing for the 90-day total investment horizon JD Inc Adr is expected to under-perform the SunCar Technology. But the stock apears to be less risky and, when comparing its historical volatility, JD Inc Adr is 4.32 times less risky than SunCar Technology. The stock trades about -0.24 of its potential returns per unit of risk. The SunCar Technology Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 19.00 in SunCar Technology Group on August 28, 2024 and sell it today you would earn a total of 12.00 from holding SunCar Technology Group or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
JD Inc Adr vs. SunCar Technology Group
Performance |
| Timeline |
| JD Inc Adr |
| SunCar Technology |
JD and SunCar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD and SunCar Technology
The main advantage of trading using opposite JD and SunCar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD position performs unexpectedly, SunCar Technology 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 SunCar Technology will offset losses from the drop in SunCar Technology's long position.The idea behind JD Inc Adr and SunCar Technology Group 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.| SunCar Technology vs. Monster Beverage Corp | SunCar Technology vs. Nascent Wine | SunCar Technology vs. East Africa Metals | SunCar Technology vs. Aerofoam Metals |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |