Correlation Between Tat Techno and JRSIS Health
Can any of the company-specific risk be diversified away by investing in both Tat Techno 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 Tat Techno and JRSIS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tat Techno and JRSIS Health Care, you can compare the effects of market volatilities on Tat Techno 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 Tat Techno with a short position of JRSIS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tat Techno and JRSIS Health.
Diversification Opportunities for Tat Techno and JRSIS Health
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tat and JRSIS is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tat Techno 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 Tat Techno 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 Tat Techno 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 Tat Techno i.e., Tat Techno and JRSIS Health go up and down completely randomly.
Pair Corralation between Tat Techno and JRSIS Health
Given the investment horizon of 90 days Tat Techno is expected to generate 0.34 times more return on investment than JRSIS Health. However, Tat Techno is 2.93 times less risky than JRSIS Health. It trades about 0.25 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 1,826 in Tat Techno on September 4, 2024 and sell it today you would earn a total of 434.00 from holding Tat Techno or generate 23.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tat Techno vs. JRSIS Health Care
Performance |
| Timeline |
| Tat Techno |
| JRSIS Health Care |
Tat Techno and JRSIS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tat Techno and JRSIS Health
The main advantage of trading using opposite Tat Techno and JRSIS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tat Techno 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.| Tat Techno vs. Innovative Solutions and | Tat Techno vs. CPI Aerostructures | Tat Techno vs. Air Industries Group | Tat Techno vs. Ballistic Recovery Systems |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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