Correlation Between Heartbeam and JIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both Heartbeam 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 Heartbeam and JIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heartbeam and JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on Heartbeam 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 Heartbeam with a short position of JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heartbeam and JIN MEDICAL.
Diversification Opportunities for Heartbeam and JIN MEDICAL
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Heartbeam and JIN is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Heartbeam 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 Heartbeam 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 Heartbeam 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 Heartbeam i.e., Heartbeam and JIN MEDICAL go up and down completely randomly.
Pair Corralation between Heartbeam and JIN MEDICAL
Given the investment horizon of 90 days Heartbeam is expected to generate 0.96 times more return on investment than JIN MEDICAL. However, Heartbeam is 1.04 times less risky than JIN MEDICAL. It trades about 0.15 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about -0.59 per unit of risk. If you would invest 244.00 in Heartbeam on August 29, 2024 and sell it today you would earn a total of 41.00 from holding Heartbeam or generate 16.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heartbeam vs. JIN MEDICAL INTERNATIONAL
Performance |
| Timeline |
| Heartbeam |
| JIN MEDICAL INTERNATIONAL |
Heartbeam and JIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heartbeam and JIN MEDICAL
The main advantage of trading using opposite Heartbeam and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartbeam 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.| Heartbeam vs. FOXO Technologies | Heartbeam vs. EUDA Health Holdings | Heartbeam vs. Nutex Health | Heartbeam vs. Healthcare Triangle |
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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 Stocks Directory module to find actively traded stocks across global markets.
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