Correlation Between INmune Bio and JD Inc

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Can any of the company-specific risk be diversified away by investing in both INmune Bio and JD Inc 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 INmune Bio and JD Inc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INmune Bio and JD Inc Adr, you can compare the effects of market volatilities on INmune Bio and JD Inc 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 INmune Bio with a short position of JD Inc. Check out your portfolio center. Please also check ongoing floating volatility patterns of INmune Bio and JD Inc.

Diversification Opportunities for INmune Bio and JD Inc

  Correlation Coefficient

Weak diversification

The 3 months correlation between INmune and JD Inc is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding INmune Bio and JD Inc Adr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Inc Adr and INmune Bio 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 INmune Bio are associated (or correlated) with JD Inc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Inc Adr has no effect on the direction of INmune Bio i.e., INmune Bio and JD Inc go up and down completely randomly.

Pair Corralation between INmune Bio and JD Inc

Given the investment horizon of 90 days INmune Bio is expected to generate 1.07 times less return on investment than JD Inc. But when comparing it to its historical volatility, INmune Bio is 1.3 times less risky than JD Inc. It trades about 0.11 of its potential returns per unit of risk. JD Inc Adr is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4,952  in JD Inc Adr on September 2, 2022 and sell it today you would earn a total of  766.00  from holding JD Inc Adr or generate 15.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
ValuesDaily Returns

INmune Bio  vs.  JD Inc Adr

 Performance (%) 
INmune Bio 
INmune Performance
0 of 100
Over the last 90 days INmune Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

INmune Price Channel

JD Inc Adr 
JD Inc Performance
0 of 100
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 Inc is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

JD Inc Price Channel

INmune Bio and JD Inc Volatility Contrast

   Predicted Return Density   

Pair Trading with INmune Bio and JD Inc

The main advantage of trading using opposite INmune Bio and JD Inc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INmune Bio position performs unexpectedly, JD Inc 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 JD Inc will offset losses from the drop in JD Inc's long position.
INmune Bio vs. HP Inc
The idea behind INmune Bio and JD Inc Adr 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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Check out your portfolio center. 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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