Correlation Between Phonex and Jd
Can any of the company-specific risk be diversified away by investing in both Phonex 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 Phonex and Jd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phonex Inc and Jd Com Inc, you can compare the effects of market volatilities on Phonex 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 Phonex with a short position of Jd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phonex and Jd.
Diversification Opportunities for Phonex and Jd
Good diversification
The 3 months correlation between Phonex and Jd is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Phonex Inc 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 Phonex 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 Phonex 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 Com Inc has no effect on the direction of Phonex i.e., Phonex and Jd go up and down completely randomly.
Pair Corralation between Phonex and Jd
Given the investment horizon of 90 days Phonex Inc is expected to generate 1.14 times more return on investment than Jd. However, Phonex is 1.14 times more volatile than Jd Com Inc. It trades about 0.02 of its potential returns per unit of risk. Jd Com Inc is currently generating about 0.0 per unit of risk. If you would invest 118.00 in Phonex Inc on September 14, 2024 and sell it today you would lose (1.00) from holding Phonex Inc or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phonex Inc vs. Jd Com Inc
Performance |
| Timeline |
| Phonex Inc |
| Jd Com Inc |
Phonex and Jd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phonex and Jd
The main advantage of trading using opposite Phonex and Jd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phonex 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.| Phonex vs. Delivery Hero SE | Phonex vs. 1StdibsCom | Phonex vs. Natural Health Trend | Phonex 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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