Correlation Between Milestone Scientific and JIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both Milestone Scientific 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 Milestone Scientific and JIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Milestone Scientific and JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on Milestone Scientific 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 Milestone Scientific with a short position of JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Milestone Scientific and JIN MEDICAL.
Diversification Opportunities for Milestone Scientific and JIN MEDICAL
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Milestone and JIN is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific 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 Milestone Scientific 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 Milestone Scientific 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 Milestone Scientific i.e., Milestone Scientific and JIN MEDICAL go up and down completely randomly.
Pair Corralation between Milestone Scientific and JIN MEDICAL
Given the investment horizon of 90 days Milestone Scientific is expected to generate 8.22 times less return on investment than JIN MEDICAL. But when comparing it to its historical volatility, Milestone Scientific is 3.69 times less risky than JIN MEDICAL. It trades about 0.03 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 40.00 in JIN MEDICAL INTERNATIONAL on August 27, 2024 and sell it today you would earn a total of 66.00 from holding JIN MEDICAL INTERNATIONAL or generate 165.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 84.68% |
| Values | Daily Returns |
Milestone Scientific vs. JIN MEDICAL INTERNATIONAL
Performance |
| Timeline |
| Milestone Scientific |
| JIN MEDICAL INTERNATIONAL |
Milestone Scientific and JIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Milestone Scientific and JIN MEDICAL
The main advantage of trading using opposite Milestone Scientific and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Milestone Scientific 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.| Milestone Scientific vs. InfuSystems Holdings | Milestone Scientific vs. STRATA Skin Sciences | Milestone Scientific vs. Retractable Technologies | Milestone Scientific vs. OncoCyte Corp |
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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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