Correlation Between Akanda Corp and JIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and JIN 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 Akanda Corp and JIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on Akanda Corp and JIN 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 Akanda Corp with a short position of JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and JIN MEDICAL.
Diversification Opportunities for Akanda Corp and JIN MEDICAL
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akanda and JIN is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and JIN MEDICAL INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIN MEDICAL INTERNATIONAL and Akanda Corp 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 Akanda Corp are associated (or correlated) with JIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIN MEDICAL INTERNATIONAL has no effect on the direction of Akanda Corp i.e., Akanda Corp and JIN MEDICAL go up and down completely randomly.
Pair Corralation between Akanda Corp and JIN MEDICAL
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the JIN MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, Akanda Corp is 1.69 times less risky than JIN MEDICAL. The stock trades about -0.13 of its potential returns per unit of risk. The JIN MEDICAL INTERNATIONAL is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 279.00 in JIN MEDICAL INTERNATIONAL on September 3, 2024 and sell it today you would lose (188.00) from holding JIN MEDICAL INTERNATIONAL or give up 67.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. JIN MEDICAL INTERNATIONAL
Performance |
| Timeline |
| Akanda Corp |
| JIN MEDICAL INTERNATIONAL |
Akanda Corp and JIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and JIN MEDICAL
The main advantage of trading using opposite Akanda Corp and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, JIN 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 JIN MEDICAL will offset losses from the drop in JIN MEDICAL's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| JIN MEDICAL vs. American Airlines Group | JIN MEDICAL vs. Skillful Craftsman Education | JIN MEDICAL vs. Universal Technical Institute | JIN MEDICAL vs. Lincoln Educational Services |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |