Correlation Between GM and Jafron Biomedical
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Jafron Biomedical Co, you can compare the effects of market volatilities on GM and Jafron Biomedical 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 GM with a short position of Jafron Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Jafron Biomedical.
Diversification Opportunities for GM and Jafron Biomedical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GM and Jafron is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Jafron Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jafron Biomedical and GM 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 General Motors are associated (or correlated) with Jafron Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jafron Biomedical has no effect on the direction of GM i.e., GM and Jafron Biomedical go up and down completely randomly.
Pair Corralation between GM and Jafron Biomedical
Allowing for the 90-day total investment horizon GM is expected to generate 1.14 times less return on investment than Jafron Biomedical. But when comparing it to its historical volatility, General Motors is 1.51 times less risky than Jafron Biomedical. It trades about 0.09 of its potential returns per unit of risk. Jafron Biomedical Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,242 in Jafron Biomedical Co on September 1, 2024 and sell it today you would earn a total of 806.00 from holding Jafron Biomedical Co or generate 35.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.28% |
| Values | Daily Returns |
General Motors vs. Jafron Biomedical Co
Performance |
| Timeline |
| General Motors |
| Jafron Biomedical |
GM and Jafron Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Jafron Biomedical
The main advantage of trading using opposite GM and Jafron Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Jafron Biomedical 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 Jafron Biomedical will offset losses from the drop in Jafron Biomedical's long position.The idea behind General Motors and Jafron Biomedical Co 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.| Jafron Biomedical vs. Nanjing Putian Telecommunications | Jafron Biomedical vs. Shenzhen Hifuture Electric | Jafron Biomedical vs. Tianjin Realty Development | Jafron Biomedical vs. Shenyang Huitian Thermal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |