Correlation Between Oriental Culture and Jd
Can any of the company-specific risk be diversified away by investing in both Oriental Culture 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 Oriental Culture and Jd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Culture Holding and Jd Com Inc, you can compare the effects of market volatilities on Oriental Culture 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 Oriental Culture with a short position of Jd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and Jd.
Diversification Opportunities for Oriental Culture and Jd
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Jd is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and Jd Com Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jd Com Inc and Oriental Culture 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 Oriental Culture Holding 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 Com Inc has no effect on the direction of Oriental Culture i.e., Oriental Culture and Jd go up and down completely randomly.
Pair Corralation between Oriental Culture and Jd
Considering the 90-day investment horizon Oriental Culture is expected to generate 1.13 times less return on investment than Jd. In addition to that, Oriental Culture is 1.39 times more volatile than Jd Com Inc. It trades about 0.03 of its total potential returns per unit of risk. Jd Com Inc is currently generating about 0.05 per unit of volatility. If you would invest 1,263 in Jd Com Inc on September 2, 2024 and sell it today you would earn a total of 454.00 from holding Jd Com Inc or generate 35.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Culture Holding vs. Jd Com Inc
Performance |
| Timeline |
| Oriental Culture Holding |
| Jd Com Inc |
Oriental Culture and Jd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and Jd
The main advantage of trading using opposite Oriental Culture and Jd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture 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.| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |