Correlation Between Dr Ing and Jd

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

By analyzing existing cross correlation between Dr Ing hc and Jd Com Inc, you can compare the effects of market volatilities on Dr Ing 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 Dr Ing with a short position of Jd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Ing and Jd.

Diversification Opportunities for Dr Ing and Jd

-0.43

Correlation Coefficient

Dr Ing  Jd

Very good diversification

The 3 months correlation between DRPRY and Jd is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dr Ing hc 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 Dr Ing 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 Dr Ing hc 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 Com Inc has no effect on the direction of Dr Ing i.e., Dr Ing and Jd go up and down completely randomly.

Pair Corralation between Dr Ing and Jd

Assuming the 90 days horizon Dr Ing hc is expected to generate 0.46 times more return on investment than Jd. However, Dr Ing hc is 2.18 times less risky than Jd. It trades about 0.29 of its potential returns per unit of risk. Jd Com Inc is currently generating about -0.07 per unit of risk. If you would invest  472.00  in Dr Ing hc on August 16, 2025 and sell it today you would earn a total of  66.00  from holding Dr Ing hc or generate 13.98% return on investment over 90 days.

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

Dr Ing hc  vs.  Jd Com Inc

Dr Ing hc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dr Ing hc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Dr Ing is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jd Com Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Jd Com Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Jd reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dr Ing and Jd

The main advantage of trading using opposite Dr Ing and Jd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Ing 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 Dr Ing hc and Jd Com 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.