Correlation Between Jia Jie and Dynamic Medical
Can any of the company-specific risk be diversified away by investing in both Jia Jie and Dynamic Medical 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 Jia Jie and Dynamic Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jia Jie Biomedical and Dynamic Medical Technologies, you can compare the effects of market volatilities on Jia Jie and Dynamic 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 Jia Jie with a short position of Dynamic Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jia Jie and Dynamic Medical.
Diversification Opportunities for Jia Jie and Dynamic Medical
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jia and Dynamic is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jia Jie Biomedical and Dynamic Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynamic Medical Tech and Jia Jie 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 Jia Jie Biomedical are associated (or correlated) with Dynamic Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynamic Medical Tech has no effect on the direction of Jia Jie i.e., Jia Jie and Dynamic Medical go up and down completely randomly.
Pair Corralation between Jia Jie and Dynamic Medical
Assuming the 90 days trading horizon Jia Jie Biomedical is expected to generate 1.05 times more return on investment than Dynamic Medical. However, Jia Jie is 1.05 times more volatile than Dynamic Medical Technologies. It trades about 0.05 of its potential returns per unit of risk. Dynamic Medical Technologies is currently generating about 0.04 per unit of risk. If you would invest 1,408 in Jia Jie Biomedical on October 25, 2024 and sell it today you would earn a total of 712.00 from holding Jia Jie Biomedical or generate 50.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jia Jie Biomedical vs. Dynamic Medical Technologies
Performance |
| Timeline |
| Jia Jie Biomedical |
| Dynamic Medical Tech |
Jia Jie and Dynamic Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jia Jie and Dynamic Medical
The main advantage of trading using opposite Jia Jie and Dynamic Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jia Jie position performs unexpectedly, Dynamic 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 Dynamic Medical will offset losses from the drop in Dynamic Medical's long position.| Jia Jie vs. Microelectronics Technology | Jia Jie vs. Everlight Electronics Co | Jia Jie vs. Bright Led Electronics | Jia Jie vs. Li Kang Biomedical |
| Dynamic Medical vs. Elan Microelectronics Corp | Dynamic Medical vs. Elite Material Co | Dynamic Medical vs. Goldsun Building Materials | Dynamic Medical vs. Insyde Software |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |