Correlation Analysis Between Alibaba Group and JD Com

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

Alibaba Group Holding  
1818

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alibaba Group Holding Limited are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unsteady basic indicators, Alibaba Group sustained solid returns over the last few months and may actually be approaching a breakup point.
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.

Alibaba Group and JD Com Volatility Contrast

 Predicted Return Density 
    
  Returns 

Alibaba Group Holding Limited  vs.  JD Com Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Given the investment horizon of 30 days, Alibaba Group is expected to generate 1.13 times less return on investment than JD Com. But when comparing it to its historical volatility, Alibaba Group Holding Limited is 1.24 times less risky than JD Com. It trades about 0.28 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  3,116  in JD Com on December 24, 2019 and sell it today you would earn a total of  901.00  from holding JD Com or generate 28.92% return on investment over 30 days.

Pair Corralation between Alibaba Group and JD Com

0.92
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Alibaba Group and JD Com

Alibaba Group Holding Limited diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding Limited and JD Com Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on JD Com and Alibaba Group 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 Alibaba Group Holding Limited 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 Alibaba Group i.e. Alibaba Group and JD Com go up and down completely randomly.

Alibaba Group Holding Limited

Pair trading matchups for Alibaba Group

See also your portfolio center. Please also try Fundamentals Matrix module to view fundamentals matrix and analyze how accounts are interrelated and interconnected with each other.