Correlation Between Fortinet and JRSIS Health
Can any of the company-specific risk be diversified away by investing in both Fortinet and JRSIS Health 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 Fortinet and JRSIS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and JRSIS Health Care, you can compare the effects of market volatilities on Fortinet and JRSIS Health 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 Fortinet with a short position of JRSIS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and JRSIS Health.
Diversification Opportunities for Fortinet and JRSIS Health
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortinet and JRSIS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and JRSIS Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JRSIS Health Care and Fortinet 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 Fortinet are associated (or correlated) with JRSIS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JRSIS Health Care has no effect on the direction of Fortinet i.e., Fortinet and JRSIS Health go up and down completely randomly.
Pair Corralation between Fortinet and JRSIS Health
Given the investment horizon of 90 days Fortinet is expected to generate 0.24 times more return on investment than JRSIS Health. However, Fortinet is 4.2 times less risky than JRSIS Health. It trades about 0.31 of its potential returns per unit of risk. JRSIS Health Care is currently generating about -0.21 per unit of risk. If you would invest 7,884 in Fortinet on September 4, 2024 and sell it today you would earn a total of 1,648 from holding Fortinet or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fortinet vs. JRSIS Health Care
Performance |
| Timeline |
| Fortinet |
| JRSIS Health Care |
Fortinet and JRSIS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and JRSIS Health
The main advantage of trading using opposite Fortinet and JRSIS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, JRSIS Health 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 JRSIS Health will offset losses from the drop in JRSIS Health's long position.| Fortinet vs. Palo Alto Networks | Fortinet vs. Uipath Inc | Fortinet vs. Block Inc | Fortinet vs. Adobe Systems Incorporated |
| JRSIS Health vs. Aveanna Healthcare Holdings | JRSIS Health vs. Acadia Healthcare | JRSIS Health vs. Pennant Group | JRSIS Health vs. Brookdale Senior Living |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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