Correlation Between JINS HOLDINGS and SPECTRAL MEDICAL

Can any of the company-specific risk be diversified away by investing in both JINS HOLDINGS and SPECTRAL 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 JINS HOLDINGS and SPECTRAL MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JINS HOLDINGS INC and SPECTRAL MEDICAL, you can compare the effects of market volatilities on JINS HOLDINGS and SPECTRAL 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 JINS HOLDINGS with a short position of SPECTRAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JINS HOLDINGS and SPECTRAL MEDICAL.

Diversification Opportunities for JINS HOLDINGS and SPECTRAL MEDICAL

-0.48

Correlation Coefficient

JINS HOLDINGS  SPECTRAL MEDICAL

Very good diversification

The 3 months correlation between JINS and SPECTRAL is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding JINS HOLDINGS INC and SPECTRAL MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRAL MEDICAL and JINS HOLDINGS 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 JINS HOLDINGS INC are associated (or correlated) with SPECTRAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRAL MEDICAL has no effect on the direction of JINS HOLDINGS i.e., JINS HOLDINGS and SPECTRAL MEDICAL go up and down completely randomly.

Pair Corralation between JINS HOLDINGS and SPECTRAL MEDICAL

Assuming the 90 days horizon JINS HOLDINGS INC is expected to generate 0.43 times more return on investment than SPECTRAL MEDICAL. However, JINS HOLDINGS INC is 2.35 times less risky than SPECTRAL MEDICAL. It trades about 0.09 of its potential returns per unit of risk. SPECTRAL MEDICAL is currently generating about -0.03 per unit of risk. If you would invest  3,580  in JINS HOLDINGS INC on October 25, 2024 and sell it today you would earn a total of  380.00  from holding JINS HOLDINGS INC or generate 10.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

JINS HOLDINGS INC  vs.  SPECTRAL MEDICAL

JINS HOLDINGS INC

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JINS HOLDINGS INC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, JINS HOLDINGS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

SPECTRAL MEDICAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SPECTRAL MEDICAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with JINS HOLDINGS and SPECTRAL MEDICAL

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

The idea behind JINS HOLDINGS INC and SPECTRAL 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.