Correlation Between JIN MEDICAL and Marchex
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and Marchex 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 Marchex 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 Marchex, you can compare the effects of market volatilities on JIN MEDICAL and Marchex 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 Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and Marchex.
Diversification Opportunities for JIN MEDICAL and Marchex
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between JIN and Marchex is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex 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 Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Marchex go up and down completely randomly.
Pair Corralation between JIN MEDICAL and Marchex
Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to under-perform the Marchex. In addition to that, JIN MEDICAL is 1.47 times more volatile than Marchex. It trades about -0.46 of its total potential returns per unit of risk. Marchex is currently generating about 0.23 per unit of volatility. If you would invest 177.00 in Marchex on September 12, 2024 and sell it today you would earn a total of 43.00 from holding Marchex or generate 24.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. Marchex
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| Marchex |
JIN MEDICAL and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and Marchex
The main advantage of trading using opposite JIN MEDICAL and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex's long position.| JIN MEDICAL vs. West Pharmaceutical Services | JIN MEDICAL vs. Alcon AG | JIN MEDICAL vs. ResMed Inc | JIN MEDICAL vs. ICU Medical |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |