Correlation Between Jd Com Inc and JD
Can any of the company-specific risk be diversified away by investing in both Jd Com Inc and JD 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 JD 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 JD Inc Adr, you can compare the effects of market volatilities on Jd Com Inc and JD 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 JD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jd Com Inc and JD.
Diversification Opportunities for Jd Com Inc and JD
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JDCMF and JD is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jd Com Inc and JD Inc Adr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc Adr 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 JD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Inc Adr has no effect on the direction of Jd Com Inc i.e., Jd Com Inc and JD go up and down completely randomly.
Pair Corralation between Jd Com Inc and JD
Assuming the 90 days horizon Jd Com Inc is expected to generate 1.52 times more return on investment than JD. However, Jd Com Inc is 1.52 times more volatile than JD Inc Adr. It trades about -0.02 of its potential returns per unit of risk. JD Inc Adr is currently generating about -0.2 per unit of risk. If you would invest 1,876 in Jd Com Inc on August 29, 2024 and sell it today you would lose (103.00) from holding Jd Com Inc or give up 5.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jd Com Inc vs. JD Inc Adr
Performance |
| Timeline |
| Jd Com Inc |
| JD Inc Adr |
Jd Com Inc and JD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jd Com Inc and JD
The main advantage of trading using opposite Jd Com Inc and JD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jd Com Inc position performs unexpectedly, JD 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 JD will offset losses from the drop in JD'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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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