Correlation Between Mangels Industrial and JD
Can any of the company-specific risk be diversified away by investing in both Mangels Industrial 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 Mangels Industrial and JD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mangels Industrial SA and JD Inc, you can compare the effects of market volatilities on Mangels Industrial 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 Mangels Industrial with a short position of JD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mangels Industrial and JD.
Diversification Opportunities for Mangels Industrial and JD
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mangels and JD is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mangels Industrial SA and JD Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc and Mangels Industrial 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 Mangels Industrial SA 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 has no effect on the direction of Mangels Industrial i.e., Mangels Industrial and JD go up and down completely randomly.
Pair Corralation between Mangels Industrial and JD
Assuming the 90 days trading horizon Mangels Industrial SA is expected to generate 0.36 times more return on investment than JD. However, Mangels Industrial SA is 2.75 times less risky than JD. It trades about -0.45 of its potential returns per unit of risk. JD Inc is currently generating about -0.17 per unit of risk. If you would invest 798.00 in Mangels Industrial SA on August 29, 2024 and sell it today you would lose (88.00) from holding Mangels Industrial SA or give up 11.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mangels Industrial SA vs. JD Inc
Performance |
| Timeline |
| Mangels Industrial |
| JD Inc |
Mangels Industrial and JD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mangels Industrial and JD
The main advantage of trading using opposite Mangels Industrial and JD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mangels Industrial 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.| Mangels Industrial vs. Schulz SA | Mangels Industrial vs. Springs Global Participaes | Mangels Industrial vs. Grazziotin SA | Mangels Industrial vs. Companhia de Tecidos |
| JD vs. Cognizant Technology Solutions | JD vs. Metalurgica Gerdau SA | JD vs. MAHLE Metal Leve | JD vs. Brpr Corporate Offices |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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