Correlation Between JD and SoundHound
Can any of the company-specific risk be diversified away by investing in both JD and SoundHound 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 SoundHound 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 SoundHound AI, you can compare the effects of market volatilities on JD and SoundHound 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 SoundHound. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD and SoundHound.
Diversification Opportunities for JD and SoundHound
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JD and SoundHound is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding JD Inc Adr and SoundHound AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoundHound AI 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 SoundHound. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoundHound AI has no effect on the direction of JD i.e., JD and SoundHound go up and down completely randomly.
Pair Corralation between JD and SoundHound
Allowing for the 90-day total investment horizon JD Inc Adr is expected to generate 0.48 times more return on investment than SoundHound. However, JD Inc Adr is 2.1 times less risky than SoundHound. It trades about -0.02 of its potential returns per unit of risk. SoundHound AI is currently generating about -0.01 per unit of risk. If you would invest 3,120 in JD Inc Adr on September 3, 2025 and sell it today you would lose (131.00) from holding JD Inc Adr or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Inc Adr vs. SoundHound AI
Performance |
| Timeline |
| JD Inc Adr |
| SoundHound AI |
JD and SoundHound Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD and SoundHound
The main advantage of trading using opposite JD and SoundHound positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD position performs unexpectedly, SoundHound 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 SoundHound will offset losses from the drop in SoundHound's long position.| JD vs. Canlan Ice Sports | JD vs. Tonopah Divide Mining | JD vs. Barrick Mining | JD vs. GoldQuest Mining Corp |
| SoundHound vs. Public Storage DEP | SoundHound vs. nDatalyze Corp | SoundHound vs. Fidelity National Information | SoundHound vs. Vantage Drilling International |
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 the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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