Correlation Between Moshi Moshi and JD Food

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

By analyzing existing cross correlation between Moshi Moshi Retail and JD Food PCL, you can compare the effects of market volatilities on Moshi Moshi and JD Food 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 Moshi Moshi with a short position of JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moshi Moshi and JD Food.

Diversification Opportunities for Moshi Moshi and JD Food

0.09

Correlation Coefficient

Moshi Moshi  JD Food

Significant diversification

The 3 months correlation between Moshi and JDF is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Moshi Moshi Retail and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL and Moshi Moshi 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 Moshi Moshi Retail are associated (or correlated) with JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of Moshi Moshi i.e., Moshi Moshi and JD Food go up and down completely randomly.

Pair Corralation between Moshi Moshi and JD Food

Assuming the 90 days trading horizon Moshi Moshi Retail is expected to generate 1.44 times more return on investment than JD Food. However, Moshi Moshi is 1.44 times more volatile than JD Food PCL. It trades about -0.04 of its potential returns per unit of risk. JD Food PCL is currently generating about -0.09 per unit of risk. If you would invest  4,268  in Moshi Moshi Retail on April 24, 2025 and sell it today you would lose (268.00) from holding Moshi Moshi Retail or give up 6.28% of portfolio value over 90 days.

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

Moshi Moshi Retail  vs.  JD Food PCL

Moshi Moshi Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moshi Moshi Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Moshi Moshi is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

JD Food PCL

Risk-Adjusted Performance

Very Weak

Over the last 90 days JD Food PCL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Moshi Moshi and JD Food

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

The idea behind Moshi Moshi Retail and JD Food PCL 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.