Correlation Between Radcom and JIADE LIMITED

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

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

Diversification Opportunities for Radcom and JIADE LIMITED

-0.38

Correlation Coefficient

Radcom  JIADE LIMITED

Very good diversification

The 3 months correlation between Radcom and JIADE is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Radcom and JIADE LIMITED Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIADE LIMITED Common and Radcom 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 Radcom are associated (or correlated) with JIADE LIMITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIADE LIMITED Common has no effect on the direction of Radcom i.e., Radcom and JIADE LIMITED go up and down completely randomly.

Pair Corralation between Radcom and JIADE LIMITED

Given the investment horizon of 90 days Radcom is expected to generate 0.34 times more return on investment than JIADE LIMITED. However, Radcom is 2.98 times less risky than JIADE LIMITED. It trades about 0.07 of its potential returns per unit of risk. JIADE LIMITED Common is currently generating about -0.06 per unit of risk. If you would invest  1,180  in Radcom on May 4, 2025 and sell it today you would earn a total of  129.00  from holding Radcom or generate 10.93% return on investment over 90 days.

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

Radcom  vs.  JIADE LIMITED Common

Radcom

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Radcom are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Radcom displayed solid returns over the last few months and may actually be approaching a breakup point.

JIADE LIMITED Common

Risk-Adjusted Performance

Very Weak

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.

Pair Trading with Radcom and JIADE LIMITED

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

The idea behind Radcom and JIADE LIMITED Common 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.