Correlation Between JD and Element Fleet

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

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

Diversification Opportunities for JD and Element Fleet

0.34

Correlation Coefficient

JD  Element Fleet

Weak diversification

The 3 months correlation between JD and Element is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc Adr and Element Fleet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Element Fleet Management and JD 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 JD Inc Adr are associated (or correlated) with Element Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Element Fleet Management has no effect on the direction of JD i.e., JD and Element Fleet go up and down completely randomly.

Pair Corralation between JD and Element Fleet

Allowing for the 90-day total investment horizon JD Inc Adr is expected to under-perform the Element Fleet. In addition to that, JD is 1.67 times more volatile than Element Fleet Management. It trades about -0.02 of its total potential returns per unit of risk. Element Fleet Management is currently generating about -0.01 per unit of volatility. If you would invest  2,636  in Element Fleet Management on September 5, 2025 and sell it today you would lose (41.00) from holding Element Fleet Management or give up 1.56% of portfolio value over 90 days.

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

JD Inc Adr  vs.  Element Fleet Management

JD Inc Adr

Risk-Adjusted Performance

Weakest

Over the last 90 days JD Inc Adr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, JD is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Element Fleet Management

Risk-Adjusted Performance

Weakest

Over the last 90 days Element Fleet Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Element Fleet is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JD and Element Fleet

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

The idea behind JD Inc Adr and Element Fleet Management 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.