Correlation Between Jd and Delivery Hero
Can any of the company-specific risk be diversified away by investing in both Jd and Delivery Hero 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 Delivery Hero 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 Delivery Hero SE, you can compare the effects of market volatilities on Jd and Delivery Hero 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 Delivery Hero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jd and Delivery Hero.
Diversification Opportunities for Jd and Delivery Hero
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jd and Delivery is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jd Com Inc and Delivery Hero SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delivery Hero SE 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 Com Inc are associated (or correlated) with Delivery Hero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delivery Hero SE has no effect on the direction of Jd i.e., Jd and Delivery Hero go up and down completely randomly.
Pair Corralation between Jd and Delivery Hero
Assuming the 90 days horizon Jd Com Inc is expected to generate 0.95 times more return on investment than Delivery Hero. However, Jd Com Inc is 1.06 times less risky than Delivery Hero. It trades about 0.05 of its potential returns per unit of risk. Delivery Hero SE is currently generating about 0.03 per unit of risk. If you would invest 1,348 in Jd Com Inc on September 14, 2024 and sell it today you would earn a total of 512.00 from holding Jd Com Inc or generate 37.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Jd Com Inc vs. Delivery Hero SE
Performance |
| Timeline |
| Jd Com Inc |
| Delivery Hero SE |
Jd and Delivery Hero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jd and Delivery Hero
The main advantage of trading using opposite Jd and Delivery Hero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jd position performs unexpectedly, Delivery Hero 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 Delivery Hero will offset losses from the drop in Delivery Hero's long position.The idea behind Jd Com Inc and Delivery Hero SE 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.| Delivery Hero vs. ZALANDO SE ADR | Delivery Hero vs. Cellnex Telecom SA | Delivery Hero vs. Jd Com Inc | Delivery Hero vs. Galaxy Entertainment 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 Stocks Directory module to find actively traded stocks across global markets.
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