Correlation Between JIN MEDICAL and Repro Med
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and Repro Med 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 Repro Med 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 Repro Med Systems, you can compare the effects of market volatilities on JIN MEDICAL and Repro Med 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 Repro Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and Repro Med.
Diversification Opportunities for JIN MEDICAL and Repro Med
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIN and Repro is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Repro Med Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repro Med Systems 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 Repro Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repro Med Systems has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Repro Med go up and down completely randomly.
Pair Corralation between JIN MEDICAL and Repro Med
Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to generate 4.62 times more return on investment than Repro Med. However, JIN MEDICAL is 4.62 times more volatile than Repro Med Systems. It trades about 0.09 of its potential returns per unit of risk. Repro Med Systems is currently generating about 0.22 per unit of risk. If you would invest 85.00 in JIN MEDICAL INTERNATIONAL on October 20, 2024 and sell it today you would earn a total of 7.00 from holding JIN MEDICAL INTERNATIONAL or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. Repro Med Systems
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| Repro Med Systems |
JIN MEDICAL and Repro Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and Repro Med
The main advantage of trading using opposite JIN MEDICAL and Repro Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, Repro Med 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 Repro Med will offset losses from the drop in Repro Med's long position.| JIN MEDICAL vs. Electrovaya Common Shares | JIN MEDICAL vs. Merit Medical Systems | JIN MEDICAL vs. Neogen | JIN MEDICAL vs. RadNet Inc |
| Repro Med vs. Precision Optics, | Repro Med vs. InfuSystems Holdings | Repro Med vs. Utah Medical Products | Repro Med vs. Milestone Scientific |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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