Correlation Between JIN MEDICAL and Utah Medical
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and Utah Medical 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 Utah Medical 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 Utah Medical Products, you can compare the effects of market volatilities on JIN MEDICAL and Utah Medical 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 Utah Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and Utah Medical.
Diversification Opportunities for JIN MEDICAL and Utah Medical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JIN and Utah is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Utah Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utah Medical Products 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 Utah Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utah Medical Products has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Utah Medical go up and down completely randomly.
Pair Corralation between JIN MEDICAL and Utah Medical
Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to generate 12.23 times more return on investment than Utah Medical. However, JIN MEDICAL is 12.23 times more volatile than Utah Medical Products. It trades about 0.09 of its potential returns per unit of risk. Utah Medical Products is currently generating about 0.01 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. Utah Medical Products
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| Utah Medical Products |
JIN MEDICAL and Utah Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and Utah Medical
The main advantage of trading using opposite JIN MEDICAL and Utah Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, Utah Medical 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 Utah Medical will offset losses from the drop in Utah Medical's long position.| JIN MEDICAL vs. Electrovaya Common Shares | JIN MEDICAL vs. Merit Medical Systems | JIN MEDICAL vs. Neogen | JIN MEDICAL vs. RadNet Inc |
| Utah Medical vs. Precision Optics, | Utah Medical vs. Repro Med Systems | Utah Medical vs. InfuSystems Holdings | Utah Medical 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |