Correlation Between SOCKET MOBILE and JD

Can any of the company-specific risk be diversified away by investing in both SOCKET MOBILE 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 SOCKET MOBILE and JD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SOCKET MOBILE NEW and JD Inc, you can compare the effects of market volatilities on SOCKET MOBILE 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 SOCKET MOBILE with a short position of JD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOCKET MOBILE and JD.

Diversification Opportunities for SOCKET MOBILE and JD

-0.32

Correlation Coefficient

SOCKET MOBILE  JD

Very good diversification

The 3 months correlation between SOCKET and JD is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SOCKET MOBILE NEW and JD Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc and SOCKET MOBILE 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 SOCKET MOBILE NEW 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 SOCKET MOBILE i.e., SOCKET MOBILE and JD go up and down completely randomly.

Pair Corralation between SOCKET MOBILE and JD

Assuming the 90 days trading horizon SOCKET MOBILE NEW is expected to under-perform the JD. In addition to that, SOCKET MOBILE is 1.01 times more volatile than JD Inc. It trades about -0.1 of its total potential returns per unit of risk. JD Inc is currently generating about 0.09 per unit of volatility. If you would invest  1,739  in JD Inc on December 19, 2024 and sell it today you would earn a total of  298.00  from holding JD Inc or generate 17.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SOCKET MOBILE NEW  vs.  JD Inc

SOCKET MOBILE NEW

Risk-Adjusted Performance

Very Weak

Over the last 90 days SOCKET MOBILE NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental drivers remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

JD Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JD Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, JD reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SOCKET MOBILE and JD

The main advantage of trading using opposite SOCKET MOBILE and JD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOCKET MOBILE 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 SOCKET MOBILE NEW and JD 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.