Correlation Between US Physical and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both US Physical and JINS HOLDINGS 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 US Physical and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Physical Therapy and JINS HOLDINGS INC, you can compare the effects of market volatilities on US Physical and JINS HOLDINGS 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 US Physical with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Physical and JINS HOLDINGS.
Diversification Opportunities for US Physical and JINS HOLDINGS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UPH and JINS is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding US Physical Therapy and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC and US Physical 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 US Physical Therapy are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of US Physical i.e., US Physical and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between US Physical and JINS HOLDINGS
Assuming the 90 days horizon US Physical Therapy is expected to under-perform the JINS HOLDINGS. But the stock apears to be less risky and, when comparing its historical volatility, US Physical Therapy is 2.25 times less risky than JINS HOLDINGS. The stock trades about -0.11 of its potential returns per unit of risk. The JINS HOLDINGS INC is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4,020 in JINS HOLDINGS INC on October 22, 2024 and sell it today you would lose (100.00) from holding JINS HOLDINGS INC or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Physical Therapy vs. JINS HOLDINGS INC
Performance |
| Timeline |
| US Physical Therapy |
| JINS HOLDINGS INC |
US Physical and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Physical and JINS HOLDINGS
The main advantage of trading using opposite US Physical and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Physical position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| US Physical vs. Motorcar Parts of | US Physical vs. Tower Semiconductor | US Physical vs. SIEM OFFSHORE NEW | US Physical vs. PT Wintermar Offshore |
| JINS HOLDINGS vs. OPKO HEALTH | JINS HOLDINGS vs. US Physical Therapy | JINS HOLDINGS vs. NAGOYA RAILROAD | JINS HOLDINGS vs. WESANA HEALTH HOLD |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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