Correlation Between Teladoc Health and JD
Can any of the company-specific risk be diversified away by investing in both Teladoc Health 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 Teladoc Health and JD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teladoc Health and JD Inc, you can compare the effects of market volatilities on Teladoc Health 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 Teladoc Health with a short position of JD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teladoc Health and JD.
Diversification Opportunities for Teladoc Health and JD
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Teladoc and JD is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Teladoc Health and JD Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc and Teladoc Health 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 Teladoc Health 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 Teladoc Health i.e., Teladoc Health and JD go up and down completely randomly.
Pair Corralation between Teladoc Health and JD
Assuming the 90 days trading horizon Teladoc Health is expected to under-perform the JD. In addition to that, Teladoc Health is 1.35 times more volatile than JD Inc. It trades about -0.01 of its total potential returns per unit of risk. JD Inc is currently generating about 0.0 per unit of volatility. If you would invest 4,746 in JD Inc on September 13, 2024 and sell it today you would lose (927.00) from holding JD Inc or give up 19.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teladoc Health vs. JD Inc
Performance |
| Timeline |
| Teladoc Health |
| JD Inc |
Teladoc Health and JD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teladoc Health and JD
The main advantage of trading using opposite Teladoc Health and JD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teladoc Health 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.| Teladoc Health vs. Fundo Investimento Imobiliario | Teladoc Health vs. LESTE FDO INV | Teladoc Health vs. Fras le SA | Teladoc Health vs. Western Digital |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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