Correlation Between JIN MEDICAL and Brainsway
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and Brainsway 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 JIN MEDICAL and Brainsway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIN MEDICAL INTERNATIONAL and Brainsway, you can compare the effects of market volatilities on JIN MEDICAL and Brainsway 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 JIN MEDICAL with a short position of Brainsway. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and Brainsway.
Diversification Opportunities for JIN MEDICAL and Brainsway
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JIN and Brainsway is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Brainsway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brainsway and JIN MEDICAL 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 JIN MEDICAL INTERNATIONAL are associated (or correlated) with Brainsway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brainsway has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Brainsway go up and down completely randomly.
Pair Corralation between JIN MEDICAL and Brainsway
Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to under-perform the Brainsway. In addition to that, JIN MEDICAL is 1.97 times more volatile than Brainsway. It trades about -0.49 of its total potential returns per unit of risk. Brainsway is currently generating about 0.0 per unit of volatility. If you would invest 1,000.00 in Brainsway on September 1, 2024 and sell it today you would lose (13.00) from holding Brainsway or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. Brainsway
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| Brainsway |
JIN MEDICAL and Brainsway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and Brainsway
The main advantage of trading using opposite JIN MEDICAL and Brainsway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, Brainsway 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 Brainsway will offset losses from the drop in Brainsway's long position.| JIN MEDICAL vs. SEI Investments | JIN MEDICAL vs. Fidus Investment Corp | JIN MEDICAL vs. Akanda Corp | JIN MEDICAL vs. Waste Management |
| Brainsway vs. Profound Medical Corp | Brainsway vs. Si Bone | Brainsway vs. Nevro Corp | Brainsway vs. Paragon 28 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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