Correlation Between JIN MEDICAL and Beyond Air
Can any of the company-specific risk be diversified away by investing in both JIN MEDICAL and Beyond Air 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 Beyond Air 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 Beyond Air, you can compare the effects of market volatilities on JIN MEDICAL and Beyond Air 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 Beyond Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIN MEDICAL and Beyond Air.
Diversification Opportunities for JIN MEDICAL and Beyond Air
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIN and Beyond is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air 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 Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Beyond Air go up and down completely randomly.
Pair Corralation between JIN MEDICAL and Beyond Air
Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to generate 2.79 times more return on investment than Beyond Air. However, JIN MEDICAL is 2.79 times more volatile than Beyond Air. It trades about 0.07 of its potential returns per unit of risk. Beyond Air is currently generating about -0.03 per unit of risk. If you would invest 46.00 in JIN MEDICAL INTERNATIONAL on September 1, 2024 and sell it today you would earn a total of 45.00 from holding JIN MEDICAL INTERNATIONAL or generate 97.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIN MEDICAL INTERNATIONAL vs. Beyond Air
Performance |
| Timeline |
| JIN MEDICAL INTERNATIONAL |
| Beyond Air |
JIN MEDICAL and Beyond Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIN MEDICAL and Beyond Air
The main advantage of trading using opposite JIN MEDICAL and Beyond Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIN MEDICAL position performs unexpectedly, Beyond Air 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 Beyond Air will offset losses from the drop in Beyond Air's long position.| JIN MEDICAL vs. SEI Investments | JIN MEDICAL vs. Fidus Investment Corp | JIN MEDICAL vs. Akanda Corp | JIN MEDICAL vs. Waste Management |
| Beyond Air vs. Profound Medical Corp | Beyond Air vs. Si Bone | Beyond Air vs. Nevro Corp | Beyond Air vs. Paragon 28 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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