Correlation Between Tinavi Medical and Jinlong Machinery
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By analyzing existing cross correlation between Tinavi Medical Technologies and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Tinavi Medical and Jinlong Machinery 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 Tinavi Medical with a short position of Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tinavi Medical and Jinlong Machinery.
Diversification Opportunities for Tinavi Medical and Jinlong Machinery
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tinavi and Jinlong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tinavi Medical Technologies and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery and Tinavi Medical 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 Tinavi Medical Technologies are associated (or correlated) with Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Tinavi Medical i.e., Tinavi Medical and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Tinavi Medical and Jinlong Machinery
Assuming the 90 days trading horizon Tinavi Medical Technologies is expected to generate 0.83 times more return on investment than Jinlong Machinery. However, Tinavi Medical Technologies is 1.21 times less risky than Jinlong Machinery. It trades about 0.19 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about 0.12 per unit of risk. If you would invest 920.00 in Tinavi Medical Technologies on November 7, 2024 and sell it today you would earn a total of 67.00 from holding Tinavi Medical Technologies or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tinavi Medical Technologies vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Tinavi Medical Techn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jinlong Machinery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tinavi Medical and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tinavi Medical and Jinlong Machinery
The main advantage of trading using opposite Tinavi Medical and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tinavi Medical position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.The idea behind Tinavi Medical Technologies and Jinlong Machinery Electronic 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.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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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