Correlation Between JIADE LIMITED and Radcom

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

By analyzing existing cross correlation between JIADE LIMITED Common and Radcom, you can compare the effects of market volatilities on JIADE LIMITED and Radcom 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 JIADE LIMITED with a short position of Radcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIADE LIMITED and Radcom.

Diversification Opportunities for JIADE LIMITED and Radcom

-0.1

Correlation Coefficient

JIADE LIMITED  Radcom

Good diversification

The 3 months correlation between JIADE and Radcom is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding JIADE LIMITED Common and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom and JIADE LIMITED 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 JIADE LIMITED Common are associated (or correlated) with Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of JIADE LIMITED i.e., JIADE LIMITED and Radcom go up and down completely randomly.

Pair Corralation between JIADE LIMITED and Radcom

Given the investment horizon of 90 days JIADE LIMITED Common is expected to under-perform the Radcom. In addition to that, JIADE LIMITED is 3.12 times more volatile than Radcom. It trades about -0.12 of its total potential returns per unit of risk. Radcom is currently generating about 0.01 per unit of volatility. If you would invest  1,285  in Radcom on May 13, 2025 and sell it today you would lose (5.00) from holding Radcom or give up 0.39% of portfolio value over 90 days.

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

JIADE LIMITED Common  vs.  Radcom

JIADE LIMITED Common

Risk-Adjusted Performance

Weakest

Over the last 90 days JIADE LIMITED Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Radcom

Risk-Adjusted Performance

Weak

Over the last 90 days Radcom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Radcom is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with JIADE LIMITED and Radcom

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

The idea behind JIADE LIMITED Common and Radcom 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.