Correlation Between Redbubble and Jd Com Inc
Can any of the company-specific risk be diversified away by investing in both Redbubble and Jd Com Inc 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 Redbubble and Jd Com Inc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Redbubble Limited and Jd Com Inc, you can compare the effects of market volatilities on Redbubble and Jd Com Inc 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 Redbubble with a short position of Jd Com Inc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Redbubble and Jd Com Inc.
Diversification Opportunities for Redbubble and Jd Com Inc
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Redbubble and JDCMF is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Redbubble Limited 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 Redbubble 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 Redbubble Limited are associated (or correlated) with Jd Com Inc. 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 Redbubble i.e., Redbubble and Jd Com Inc go up and down completely randomly.
Pair Corralation between Redbubble and Jd Com Inc
Assuming the 90 days horizon Redbubble Limited is expected to generate 2.17 times more return on investment than Jd Com Inc. However, Redbubble is 2.17 times more volatile than Jd Com Inc. It trades about 0.05 of its potential returns per unit of risk. Jd Com Inc is currently generating about 0.06 per unit of risk. If you would invest 16.00 in Redbubble Limited on December 2, 2024 and sell it today you would earn a total of 1.00 from holding Redbubble Limited or generate 6.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Redbubble Limited vs. Jd Com Inc
Performance |
Timeline |
Redbubble Limited |
Jd Com Inc |
Redbubble and Jd Com Inc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Redbubble and Jd Com Inc
The main advantage of trading using opposite Redbubble and Jd Com Inc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Redbubble position performs unexpectedly, Jd Com Inc 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 Com Inc will offset losses from the drop in Jd Com Inc's long position.Redbubble vs. Jd Com Inc | Redbubble vs. Bravada Intl | Redbubble vs. Allegroeu SA | Redbubble vs. PDD Holdings |
Jd Com Inc vs. Bravada Intl | Jd Com Inc vs. Allegroeu SA | Jd Com Inc vs. Redbubble Limited | Jd Com Inc vs. Meituan |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |