Correlation Between Jafron Biomedical and Industrial
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By analyzing existing cross correlation between Jafron Biomedical Co and Industrial and Commercial, you can compare the effects of market volatilities on Jafron Biomedical and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jafron Biomedical and Industrial.
Diversification Opportunities for Jafron Biomedical and Industrial
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jafron and Industrial is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Jafron Biomedical Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Jafron Biomedical i.e., Jafron Biomedical and Industrial go up and down completely randomly.
Pair Corralation between Jafron Biomedical and Industrial
Assuming the 90 days trading horizon Jafron Biomedical is expected to generate 3.35 times less return on investment than Industrial. In addition to that, Jafron Biomedical is 2.2 times more volatile than Industrial and Commercial. It trades about 0.01 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.08 per unit of volatility. If you would invest 403.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 217.00 from holding Industrial and Commercial or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jafron Biomedical Co vs. Industrial and Commercial
Performance |
| Timeline |
| Jafron Biomedical |
| Industrial and Commercial |
Jafron Biomedical and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jafron Biomedical and Industrial
The main advantage of trading using opposite Jafron Biomedical and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jafron Biomedical position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Jafron Biomedical vs. Industrial and Commercial | Jafron Biomedical vs. China Construction Bank | Jafron Biomedical vs. Agricultural Bank of | Jafron Biomedical vs. Bank of China |
| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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