Correlation Between JIN MEDICAL and Encision
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and Encision 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 Encision 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 Encision, you can compare the effects of market volatilities on JIN MEDICAL and Encision 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 Encision. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and Encision.
Diversification Opportunities for JIN MEDICAL and Encision
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JIN and Encision is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Encision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encision 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 Encision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encision has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Encision go up and down completely randomly.
Pair Corralation between JIN MEDICAL and Encision
If you would invest 44.00 in Encision on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Encision or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. Encision
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| Encision |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JIN MEDICAL and Encision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and Encision
The main advantage of trading using opposite JIN MEDICAL and Encision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, Encision 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 Encision will offset losses from the drop in Encision's long position.| JIN MEDICAL vs. Heartbeam | JIN MEDICAL vs. EUDA Health Holdings | JIN MEDICAL vs. Nutex Health | JIN MEDICAL vs. Healthcare Triangle |
| Encision vs. Procyon | Encision vs. Environmmtl Tectonic | Encision vs. SCI Engineered Materials | Encision vs. Electronic Control Security |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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