Correlation Between JD and Yahoo
Can any of the company-specific risk be diversified away by investing in both JD and Yahoo 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 JD and Yahoo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Inc Adr and Yahoo Inc, you can compare the effects of market volatilities on JD and Yahoo 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 JD with a short position of Yahoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD and Yahoo.
Diversification Opportunities for JD and Yahoo
Pay attention - limited upside
The 3 months correlation between JD and Yahoo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc Adr and Yahoo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yahoo Inc and JD 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 JD Inc Adr are associated (or correlated) with Yahoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yahoo Inc has no effect on the direction of JD i.e., JD and Yahoo go up and down completely randomly.
Pair Corralation between JD and Yahoo
If you would invest (100.00) in Yahoo Inc on January 21, 2024 and sell it today you would earn a total of 100.00 from holding Yahoo Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JD Inc Adr vs. Yahoo Inc
Performance |
| Timeline |
| JD Inc Adr |
| Yahoo Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JD and Yahoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD and Yahoo
The main advantage of trading using opposite JD and Yahoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD position performs unexpectedly, Yahoo 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 Yahoo will offset losses from the drop in Yahoo's long position.The idea behind JD Inc Adr and Yahoo Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yahoo vs. GameStop Corp | Yahoo vs. Playtika Holding Corp | Yahoo vs. SunOpta | Yahoo vs. Grocery Outlet Holding |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |