Correlation Between Jiangsu Bioperfectus and Thinkingdom Media

Can any of the company-specific risk be diversified away by investing in both Jiangsu Bioperfectus and Thinkingdom Media 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 Jiangsu Bioperfectus and Thinkingdom Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jiangsu Bioperfectus Technologies and Thinkingdom Media Group, you can compare the effects of market volatilities on Jiangsu Bioperfectus and Thinkingdom Media 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 Jiangsu Bioperfectus with a short position of Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Bioperfectus and Thinkingdom Media.

Diversification Opportunities for Jiangsu Bioperfectus and Thinkingdom Media

-0.29

Correlation Coefficient

Jiangsu Bioperfectus  Thinkingdom Media

Very good diversification

The 3 months correlation between Jiangsu and Thinkingdom is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Bioperfectus Technolog and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media and Jiangsu Bioperfectus 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 Jiangsu Bioperfectus Technologies are associated (or correlated) with Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Jiangsu Bioperfectus i.e., Jiangsu Bioperfectus and Thinkingdom Media go up and down completely randomly.

Pair Corralation between Jiangsu Bioperfectus and Thinkingdom Media

Assuming the 90 days trading horizon Jiangsu Bioperfectus Technologies is expected to generate 1.19 times more return on investment than Thinkingdom Media. However, Jiangsu Bioperfectus is 1.19 times more volatile than Thinkingdom Media Group. It trades about 0.06 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.0 per unit of risk. If you would invest  6,630  in Jiangsu Bioperfectus Technologies on December 28, 2024 and sell it today you would earn a total of  478.00  from holding Jiangsu Bioperfectus Technologies or generate 7.21% return on investment over 90 days.

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

Jiangsu Bioperfectus Technolog  vs.  Thinkingdom Media Group

Jiangsu Bioperfectus

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jiangsu Bioperfectus Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Jiangsu Bioperfectus may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Thinkingdom Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thinkingdom Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Thinkingdom Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jiangsu Bioperfectus and Thinkingdom Media

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

The idea behind Jiangsu Bioperfectus Technologies and Thinkingdom Media Group 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.