Correlation Analysis Between Amazon Com and JD Com

Analyzing existing cross correlation between Amazon Com and JD Com. You can compare the effects of market volatilities on Amazon Com and JD Com 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 Amazon Com with a short position of JD Com. See also your portfolio center. Please also check ongoing floating volatility patterns of Amazon Com and JD Com.
Horizon     30 Days    Login   to change
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Comparative Performance

Amazon Com  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Amazon Com are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Allthough quite unsteady forward indicators, Amazon Com may actually be approaching a critical reversion point that can send shares even higher in February 2020.
JD Com  
1717

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in JD Com are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, JD Com exhibited solid returns over the last few months and may actually be approaching a breakup point.

Amazon Com and JD Com Volatility Contrast

 Predicted Return Density 
    
  Returns 

Amazon Com Inc  vs.  JD Com Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Given the investment horizon of 30 days, Amazon Com is expected to generate 4.12 times less return on investment than JD Com. But when comparing it to its historical volatility, Amazon Com is 1.6 times less risky than JD Com. It trades about 0.1 of its potential returns per unit of risk. JD Com is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  3,173  in JD Com on December 25, 2019 and sell it today you would earn a total of  904.00  from holding JD Com or generate 28.49% return on investment over 30 days.

Pair Corralation between Amazon Com and JD Com

0.86
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy98.39%
ValuesDaily Returns

Diversification Opportunities for Amazon Com and JD Com

Amazon Com Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Amazon Com Inc and JD Com Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on JD Com and Amazon Com 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 Amazon Com are associated (or correlated) with JD Com. 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 has no effect on the direction of Amazon Com i.e. Amazon Com and JD Com go up and down completely randomly.
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