Correlation Between Jd Com Inc and Hour Loop
Can any of the company-specific risk be diversified away by investing in both Jd Com Inc and Hour Loop 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 Hour Loop 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 Hour Loop, you can compare the effects of market volatilities on Jd Com Inc and Hour Loop 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 Hour Loop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jd Com Inc and Hour Loop.
Diversification Opportunities for Jd Com Inc and Hour Loop
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JDCMF and Hour is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jd Com Inc and Hour Loop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hour Loop 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 Hour Loop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hour Loop has no effect on the direction of Jd Com Inc i.e., Jd Com Inc and Hour Loop go up and down completely randomly.
Pair Corralation between Jd Com Inc and Hour Loop
Assuming the 90 days horizon Jd Com Inc is expected to under-perform the Hour Loop. But the pink sheet apears to be less risky and, when comparing its historical volatility, Jd Com Inc is 1.48 times less risky than Hour Loop. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Hour Loop is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Hour Loop on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Hour Loop or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jd Com Inc vs. Hour Loop
Performance |
| Timeline |
| Jd Com Inc |
| Hour Loop |
Jd Com Inc and Hour Loop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jd Com Inc and Hour Loop
The main advantage of trading using opposite Jd Com Inc and Hour Loop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jd Com Inc position performs unexpectedly, Hour Loop 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 Hour Loop will offset losses from the drop in Hour Loop's long position.| Jd Com Inc vs. 1StdibsCom | Jd Com Inc vs. Natural Health Trend | Jd Com Inc vs. Hour Loop | Jd Com Inc vs. Liquidity Services |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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