Correlation Between JIN MEDICAL and Milestone Scientific
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and Milestone Scientific 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 Milestone Scientific 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 Milestone Scientific, you can compare the effects of market volatilities on JIN MEDICAL and Milestone Scientific 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 Milestone Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and Milestone Scientific.
Diversification Opportunities for JIN MEDICAL and Milestone Scientific
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JIN and Milestone is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Milestone Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Milestone Scientific 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 Milestone Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Milestone Scientific has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Milestone Scientific go up and down completely randomly.
Pair Corralation between JIN MEDICAL and Milestone Scientific
Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to under-perform the Milestone Scientific. In addition to that, JIN MEDICAL is 1.77 times more volatile than Milestone Scientific. It trades about -0.13 of its total potential returns per unit of risk. Milestone Scientific is currently generating about 0.03 per unit of volatility. If you would invest 101.00 in Milestone Scientific on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Milestone Scientific or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. Milestone Scientific
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| Milestone Scientific |
JIN MEDICAL and Milestone Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and Milestone Scientific
The main advantage of trading using opposite JIN MEDICAL and Milestone Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, Milestone Scientific 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 Milestone Scientific will offset losses from the drop in Milestone Scientific'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 |
| Milestone Scientific vs. InfuSystems Holdings | Milestone Scientific vs. STRATA Skin Sciences | Milestone Scientific vs. Retractable Technologies | Milestone Scientific vs. OncoCyte Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |