Correlation Between Stellar and JD HEALTH

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

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

Diversification Opportunities for Stellar and JD HEALTH

-0.74

Correlation Coefficient

Stellar  JD HEALTH

Pay attention - limited upside

The 3 months correlation between Stellar and 8ZN is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and JD HEALTH INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD HEALTH INTL and Stellar 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 Stellar are associated (or correlated) with JD HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD HEALTH INTL has no effect on the direction of Stellar i.e., Stellar and JD HEALTH go up and down completely randomly.

Pair Corralation between Stellar and JD HEALTH

Assuming the 90 days trading horizon Stellar is expected to under-perform the JD HEALTH. In addition to that, Stellar is 1.81 times more volatile than JD HEALTH INTL. It trades about -0.02 of its total potential returns per unit of risk. JD HEALTH INTL is currently generating about 0.08 per unit of volatility. If you would invest  348.00  in JD HEALTH INTL on December 20, 2024 and sell it today you would earn a total of  52.00  from holding JD HEALTH INTL or generate 14.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.65%
Values	Daily Returns

Stellar  vs.  JD HEALTH INTL

Stellar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stellar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Stellar shareholders.

JD HEALTH INTL

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JD HEALTH INTL are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, JD HEALTH reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stellar and JD HEALTH

The main advantage of trading using opposite Stellar and JD HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar position performs unexpectedly, JD HEALTH 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 HEALTH will offset losses from the drop in JD HEALTH's long position.

The idea behind Stellar and JD HEALTH INTL 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.