Correlation Between 1 800 and JD

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Can any of the company-specific risk be diversified away by investing in both 1 800 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 1 800 and JD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1 800 FLOWERSCOM and JD Inc Adr, you can compare the effects of market volatilities on 1 800 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 1 800 with a short position of JD. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1 800 and JD.

Diversification Opportunities for 1 800 and JD

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between FLWS and JD is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding 1-800 FLOWERSCOM and JD Inc Adr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc Adr and 1 800 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 1 800 FLOWERSCOM 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 Adr has no effect on the direction of 1 800 i.e., 1 800 and JD go up and down completely randomly.

Pair Corralation between 1 800 and JD

Given the investment horizon of 90 days 1 800 is expected to generate 2.33 times less return on investment than JD. But when comparing it to its historical volatility, 1 800 FLOWERSCOM is 2.51 times less risky than JD. It trades about 0.15 of its potential returns per unit of risk. JD Inc Adr is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,408  in JD Inc Adr on December 29, 2023 and sell it today you would earn a total of  315.00  from holding JD Inc Adr or generate 13.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

1-800 FLOWERSCOM  vs.  JD Inc Adr

 Performance 
       Timeline  
1-800 FLOWERSCOM 

Risk-Adjusted Performance

1 of 100

 
Low
 
High
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in 1 800 FLOWERSCOM are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, 1 800 is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
JD Inc Adr 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days JD Inc Adr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, JD is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

1 800 and JD Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 1 800 and JD

The main advantage of trading using opposite 1 800 and JD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1 800 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.
The idea behind 1 800 FLOWERSCOM and JD Inc Adr 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.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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