Correlation Between Jd Com Inc and Dada Nexus
Can any of the company-specific risk be diversified away by investing in both Jd Com Inc and Dada Nexus 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 Dada Nexus 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 Dada Nexus, you can compare the effects of market volatilities on Jd Com Inc and Dada Nexus 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 Dada Nexus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jd Com Inc and Dada Nexus.
Diversification Opportunities for Jd Com Inc and Dada Nexus
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JDCMF and Dada is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jd Com Inc and Dada Nexus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dada Nexus 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 Dada Nexus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dada Nexus has no effect on the direction of Jd Com Inc i.e., Jd Com Inc and Dada Nexus go up and down completely randomly.
Pair Corralation between Jd Com Inc and Dada Nexus
Assuming the 90 days horizon Jd Com Inc is expected to generate 1.05 times more return on investment than Dada Nexus. However, Jd Com Inc is 1.05 times more volatile than Dada Nexus. It trades about 0.05 of its potential returns per unit of risk. Dada Nexus is currently generating about -0.01 per unit of risk. If you would invest 1,420 in Jd Com Inc on September 3, 2024 and sell it today you would earn a total of 297.00 from holding Jd Com Inc or generate 20.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jd Com Inc vs. Dada Nexus
Performance |
| Timeline |
| Jd Com Inc |
| Dada Nexus |
Jd Com Inc and Dada Nexus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jd Com Inc and Dada Nexus
The main advantage of trading using opposite Jd Com Inc and Dada Nexus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jd Com Inc position performs unexpectedly, Dada Nexus 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 Dada Nexus will offset losses from the drop in Dada Nexus' 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 |
| Dada Nexus vs. Vipshop Holdings Limited | Dada Nexus vs. JD Inc Adr | Dada Nexus vs. PDD Holdings | Dada Nexus vs. Jumia Technologies AG |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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