Correlation Between Jd and Oriental Culture
Can any of the company-specific risk be diversified away by investing in both Jd and Oriental Culture 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 Oriental Culture 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 Oriental Culture Holding, you can compare the effects of market volatilities on Jd and Oriental Culture 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 Oriental Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jd and Oriental Culture.
Diversification Opportunities for Jd and Oriental Culture
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jd and Oriental is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jd Com Inc and Oriental Culture Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Culture Holding 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 Oriental Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Culture Holding has no effect on the direction of Jd i.e., Jd and Oriental Culture go up and down completely randomly.
Pair Corralation between Jd and Oriental Culture
Assuming the 90 days horizon Jd Com Inc is expected to under-perform the Oriental Culture. But the pink sheet apears to be less risky and, when comparing its historical volatility, Jd Com Inc is 1.31 times less risky than Oriental Culture. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Oriental Culture Holding is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 128.00 in Oriental Culture Holding on September 2, 2024 and sell it today you would lose (11.00) from holding Oriental Culture Holding or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jd Com Inc vs. Oriental Culture Holding
Performance |
| Timeline |
| Jd Com Inc |
| Oriental Culture Holding |
Jd and Oriental Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jd and Oriental Culture
The main advantage of trading using opposite Jd and Oriental Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jd position performs unexpectedly, Oriental Culture 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 Oriental Culture will offset losses from the drop in Oriental Culture's long position.The idea behind Jd Com Inc and Oriental Culture Holding 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.| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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