Correlation Between First Ship and JIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and JIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and JIN MEDICAL.
Diversification Opportunities for First Ship and JIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and JIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and JIN MEDICAL go up and down completely randomly.
Pair Corralation between First Ship and JIN MEDICAL
Assuming the 90 days horizon First Ship is expected to generate 6.76 times less return on investment than JIN MEDICAL. But when comparing it to its historical volatility, First Ship Lease is 5.9 times less risky than JIN MEDICAL. It trades about 0.05 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 71.00 in JIN MEDICAL INTERNATIONAL on September 12, 2024 and sell it today you would earn a total of 7.48 from holding JIN MEDICAL INTERNATIONAL or generate 10.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Ship Lease vs. JIN MEDICAL INTERNATIONAL
Performance |
| Timeline |
| First Ship Lease |
| JIN MEDICAL INTERNATIONAL |
First Ship and JIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and JIN MEDICAL
The main advantage of trading using opposite First Ship and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.| First Ship vs. United Rentals | First Ship vs. Ashtead Gro | First Ship vs. AerCap Holdings NV | First Ship vs. Fortress Transp Infra |
| JIN MEDICAL vs. West Pharmaceutical Services | JIN MEDICAL vs. Alcon AG | JIN MEDICAL vs. ResMed Inc | JIN MEDICAL vs. ICU Medical |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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