Correlation Between JD and MCBC Holdings

Can any of the company-specific risk be diversified away by investing in both JD and MCBC Holdings 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 MCBC Holdings 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 MCBC Holdings, you can compare the effects of market volatilities on JD and MCBC Holdings 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 MCBC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD and MCBC Holdings.

Diversification Opportunities for JD and MCBC Holdings

0.37

Correlation Coefficient

JD  MCBC Holdings

Weak diversification

The 3 months correlation between JD and MCBC is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc Adr and MCBC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCBC Holdings 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 MCBC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCBC Holdings has no effect on the direction of JD i.e., JD and MCBC Holdings go up and down completely randomly.

Pair Corralation between JD and MCBC Holdings

Allowing for the 90-day total investment horizon JD Inc Adr is expected to generate 0.81 times more return on investment than MCBC Holdings. However, JD Inc Adr is 1.23 times less risky than MCBC Holdings. It trades about 0.1 of its potential returns per unit of risk. MCBC Holdings is currently generating about 0.07 per unit of risk. If you would invest  3,202  in JD Inc Adr on July 4, 2025 and sell it today you would earn a total of  415.00  from holding JD Inc Adr or generate 12.96% return on investment over 90 days.

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

JD Inc Adr  vs.  MCBC Holdings

JD Inc Adr

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in JD Inc Adr are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, JD exhibited solid returns over the last few months and may actually be approaching a breakup point.

MCBC Holdings

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in MCBC Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, MCBC Holdings may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with JD and MCBC Holdings

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

The idea behind JD Inc Adr and MCBC Holdings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.