Correlation Between JIN MEDICAL and LeMaitre Vascular
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and LeMaitre Vascular 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 LeMaitre Vascular 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 LeMaitre Vascular, you can compare the effects of market volatilities on JIN MEDICAL and LeMaitre Vascular 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 LeMaitre Vascular. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and LeMaitre Vascular.
Diversification Opportunities for JIN MEDICAL and LeMaitre Vascular
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIN and LeMaitre is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and LeMaitre Vascular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeMaitre Vascular 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 LeMaitre Vascular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeMaitre Vascular has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and LeMaitre Vascular go up and down completely randomly.
Pair Corralation between JIN MEDICAL and LeMaitre Vascular
Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to under-perform the LeMaitre Vascular. In addition to that, JIN MEDICAL is 5.22 times more volatile than LeMaitre Vascular. It trades about -0.13 of its total potential returns per unit of risk. LeMaitre Vascular is currently generating about 0.18 per unit of volatility. If you would invest 8,734 in LeMaitre Vascular on August 31, 2024 and sell it today you would earn a total of 1,846 from holding LeMaitre Vascular or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. LeMaitre Vascular
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| LeMaitre Vascular |
JIN MEDICAL and LeMaitre Vascular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and LeMaitre Vascular
The main advantage of trading using opposite JIN MEDICAL and LeMaitre Vascular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, LeMaitre Vascular 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 LeMaitre Vascular will offset losses from the drop in LeMaitre Vascular's long position.| JIN MEDICAL vs. Corporacion America Airports | JIN MEDICAL vs. Cadence Design Systems | JIN MEDICAL vs. Rackspace Technology | JIN MEDICAL vs. Porvair plc |
| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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