Correlation Between Jafron Biomedical and Guangdong Jinming
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By analyzing existing cross correlation between Jafron Biomedical Co and Guangdong Jinming Machinery, you can compare the effects of market volatilities on Jafron Biomedical and Guangdong Jinming 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 Guangdong Jinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jafron Biomedical and Guangdong Jinming.
Diversification Opportunities for Jafron Biomedical and Guangdong Jinming
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jafron and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jafron Biomedical Co and Guangdong Jinming Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinming 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 Guangdong Jinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinming has no effect on the direction of Jafron Biomedical i.e., Jafron Biomedical and Guangdong Jinming go up and down completely randomly.
Pair Corralation between Jafron Biomedical and Guangdong Jinming
Assuming the 90 days trading horizon Jafron Biomedical Co is expected to under-perform the Guangdong Jinming. But the stock apears to be less risky and, when comparing its historical volatility, Jafron Biomedical Co is 1.41 times less risky than Guangdong Jinming. The stock trades about -0.05 of its potential returns per unit of risk. The Guangdong Jinming Machinery is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Guangdong Jinming Machinery on September 5, 2024 and sell it today you would earn a total of 80.00 from holding Guangdong Jinming Machinery or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jafron Biomedical Co vs. Guangdong Jinming Machinery
Performance |
| Timeline |
| Jafron Biomedical |
| Guangdong Jinming |
Jafron Biomedical and Guangdong Jinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jafron Biomedical and Guangdong Jinming
The main advantage of trading using opposite Jafron Biomedical and Guangdong Jinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jafron Biomedical position performs unexpectedly, Guangdong Jinming 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 Guangdong Jinming will offset losses from the drop in Guangdong Jinming's long position.| Jafron Biomedical vs. Kweichow Moutai Co | Jafron Biomedical vs. Contemporary Amperex Technology | Jafron Biomedical vs. G bits Network Technology | Jafron Biomedical vs. Beijing Roborock Technology |
| Guangdong Jinming vs. Dongguan Tarry Electronics | Guangdong Jinming vs. Cofoe Medical Technology | Guangdong Jinming vs. Integrated Electronic Systems | Guangdong Jinming vs. Jafron Biomedical Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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