Correlation Between JD and Hello

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

Diversification Opportunities for JD and Hello

-0.42

Correlation Coefficient

JD  Hello

Very good diversification

The 3 months correlation between JD and Hello is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc Adr and Hello Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hello Group 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 Hello. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hello Group has no effect on the direction of JD i.e., JD and Hello go up and down completely randomly.

Pair Corralation between JD and Hello

Allowing for the 90-day total investment horizon JD Inc Adr is expected to generate 1.13 times more return on investment than Hello. However, JD is 1.13 times more volatile than Hello Group. It trades about 0.08 of its potential returns per unit of risk. Hello Group is currently generating about -0.09 per unit of risk. If you would invest  3,247  in JD Inc Adr on July 2, 2025 and sell it today you would earn a total of  317.00  from holding JD Inc Adr or generate 9.76% return on investment over 90 days.

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

JD Inc Adr  vs.  Hello Group

JD Inc Adr

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in JD Inc Adr are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, JD may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Hello Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Hello Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with JD and Hello

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

The idea behind JD Inc Adr and Hello Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..