Correlation Between Jointo Energy and APT Medical

Can any of the company-specific risk be diversified away by investing in both Jointo Energy and APT 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 Jointo Energy and APT Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jointo Energy Investment and APT Medical, you can compare the effects of market volatilities on Jointo Energy and APT 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 Jointo Energy with a short position of APT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and APT Medical.

Diversification Opportunities for Jointo Energy and APT Medical

0.19

Correlation Coefficient

Jointo Energy  APT Medical

Average diversification

The 3 months correlation between Jointo and APT is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and APT Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Medical and Jointo Energy 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 Jointo Energy Investment are associated (or correlated) with APT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Medical has no effect on the direction of Jointo Energy i.e., Jointo Energy and APT Medical go up and down completely randomly.

Pair Corralation between Jointo Energy and APT Medical

Assuming the 90 days trading horizon Jointo Energy Investment is expected to under-perform the APT Medical. But the stock apears to be less risky and, when comparing its historical volatility, Jointo Energy Investment is 1.26 times less risky than APT Medical. The stock trades about -0.01 of its potential returns per unit of risk. The APT Medical is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  30,292  in APT Medical on October 4, 2024 and sell it today you would earn a total of  6,941  from holding APT Medical or generate 22.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jointo Energy Investment  vs.  APT Medical

Jointo Energy Investment

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jointo Energy Investment are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Jointo Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

APT Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days APT Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Jointo Energy and APT Medical

The main advantage of trading using opposite Jointo Energy and APT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, APT 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 APT Medical will offset losses from the drop in APT Medical's long position.

The idea behind Jointo Energy Investment and APT Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.