Correlation Between JIN MEDICAL and Corporacion America
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and Corporacion America 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 Corporacion America 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 Corporacion America Airports, you can compare the effects of market volatilities on JIN MEDICAL and Corporacion America 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 Corporacion America. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and Corporacion America.
Diversification Opportunities for JIN MEDICAL and Corporacion America
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JIN and Corporacion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Corporacion America Airports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporacion America 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 Corporacion America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporacion America has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Corporacion America go up and down completely randomly.
Pair Corralation between JIN MEDICAL and Corporacion America
Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to under-perform the Corporacion America. In addition to that, JIN MEDICAL is 3.9 times more volatile than Corporacion America Airports. It trades about -0.06 of its total potential returns per unit of risk. Corporacion America Airports is currently generating about 0.03 per unit of volatility. If you would invest 1,768 in Corporacion America Airports on September 2, 2024 and sell it today you would earn a total of 122.00 from holding Corporacion America Airports or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. Corporacion America Airports
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| Corporacion America |
JIN MEDICAL and Corporacion America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and Corporacion America
The main advantage of trading using opposite JIN MEDICAL and Corporacion America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, Corporacion America 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 Corporacion America will offset losses from the drop in Corporacion America's long position.| JIN MEDICAL vs. Zijin Mining Group | JIN MEDICAL vs. Nexstar Broadcasting Group | JIN MEDICAL vs. Summa Silver Corp | JIN MEDICAL vs. NioCorp Developments Ltd |
| Corporacion America vs. Grupo Aeroportuario del | Corporacion America vs. Grupo Aeroportuario del | Corporacion America vs. AerSale Corp | Corporacion America vs. Flughafen Zrich AG |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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