Correlation Between Visa and JD
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and JD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and JD Inc, you can compare the effects of market volatilities on Visa 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 Visa with a short position of JD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and JD.
Diversification Opportunities for Visa and JD
Pay attention - limited upside
The 3 months correlation between Visa and JD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and JD Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc and Visa 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 Visa Class A 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 Visa i.e., Visa and JD go up and down completely randomly.
Pair Corralation between Visa and JD
If you would invest 0.00 in JD Inc on January 5, 2025 and sell it today you would earn a total of 0.00 from holding JD Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Visa Class A vs. JD Inc
Performance |
| Timeline |
| Visa Class A |
| JD Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Visa and JD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and JD
The main advantage of trading using opposite Visa and JD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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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