Correlation Between Jd Com Inc and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Jd Com Inc and Cellnex Telecom 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 Com Inc and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jd Com Inc and Cellnex Telecom SA, you can compare the effects of market volatilities on Jd Com Inc and Cellnex Telecom 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 Com Inc with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jd Com Inc and Cellnex Telecom.
Diversification Opportunities for Jd Com Inc and Cellnex Telecom
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between JDCMF and Cellnex is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jd Com Inc and Cellnex Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellnex Telecom SA and Jd Com Inc 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 Com Inc are associated (or correlated) with Cellnex Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellnex Telecom SA has no effect on the direction of Jd Com Inc i.e., Jd Com Inc and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Jd Com Inc and Cellnex Telecom
Assuming the 90 days horizon Jd Com Inc is expected to under-perform the Cellnex Telecom. In addition to that, Jd Com Inc is 2.42 times more volatile than Cellnex Telecom SA. It trades about -0.14 of its total potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.17 per unit of volatility. If you would invest 2,017 in Cellnex Telecom SA on August 30, 2024 and sell it today you would lose (261.00) from holding Cellnex Telecom SA or give up 12.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jd Com Inc vs. Cellnex Telecom SA
Performance |
| Timeline |
| Jd Com Inc |
| Cellnex Telecom SA |
Jd Com Inc and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jd Com Inc and Cellnex Telecom
The main advantage of trading using opposite Jd Com Inc and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jd Com Inc position performs unexpectedly, Cellnex Telecom 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 Cellnex Telecom will offset losses from the drop in Cellnex Telecom's long position.| Jd Com Inc vs. Bravada Intl | Jd Com Inc vs. Allegroeu SA | Jd Com Inc vs. Redbubble Limited | Jd Com Inc vs. Meituan |
| Cellnex Telecom vs. Jones Lang LaSalle | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Colliers International Group | Cellnex Telecom vs. CoStar 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |