Correlation Between Jafron Biomedical and Allmed Medical
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By analyzing existing cross correlation between Jafron Biomedical Co and Allmed Medical Products, you can compare the effects of market volatilities on Jafron Biomedical and Allmed Medical 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 Jafron Biomedical with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jafron Biomedical and Allmed Medical.
Diversification Opportunities for Jafron Biomedical and Allmed Medical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jafron and Allmed is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jafron Biomedical Co and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products and Jafron Biomedical 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 Jafron Biomedical Co are associated (or correlated) with Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Jafron Biomedical i.e., Jafron Biomedical and Allmed Medical go up and down completely randomly.
Pair Corralation between Jafron Biomedical and Allmed Medical
Assuming the 90 days trading horizon Jafron Biomedical Co is expected to under-perform the Allmed Medical. But the stock apears to be less risky and, when comparing its historical volatility, Jafron Biomedical Co is 1.41 times less risky than Allmed Medical. The stock trades about -0.03 of its potential returns per unit of risk. The Allmed Medical Products is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 846.00 in Allmed Medical Products on September 1, 2024 and sell it today you would earn a total of 54.00 from holding Allmed Medical Products or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jafron Biomedical Co vs. Allmed Medical Products
Performance |
| Timeline |
| Jafron Biomedical |
| Allmed Medical Products |
Jafron Biomedical and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jafron Biomedical and Allmed Medical
The main advantage of trading using opposite Jafron Biomedical and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jafron Biomedical position performs unexpectedly, Allmed Medical 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.| Jafron Biomedical vs. Nanjing Putian Telecommunications | Jafron Biomedical vs. Shenzhen Hifuture Electric | Jafron Biomedical vs. Tianjin Realty Development | Jafron Biomedical vs. Shenyang Huitian Thermal |
| Allmed Medical vs. Nanjing Putian Telecommunications | Allmed Medical vs. Shenzhen Hifuture Electric | Allmed Medical vs. Tianjin Realty Development | Allmed Medical vs. Shenyang Huitian Thermal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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