Correlation Between BioLife Sciences and JIN MEDICAL

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

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

Diversification Opportunities for BioLife Sciences and JIN MEDICAL

0.0

Correlation Coefficient

BioLife Sciences  JIN MEDICAL

Pay attention - limited upside

The 3 months correlation between BioLife and JIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Sciences and JIN MEDICAL INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIN MEDICAL INTERNATIONAL and BioLife Sciences 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 BioLife Sciences are associated (or correlated) with JIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIN MEDICAL INTERNATIONAL has no effect on the direction of BioLife Sciences i.e., BioLife Sciences and JIN MEDICAL go up and down completely randomly.

Pair Corralation between BioLife Sciences and JIN MEDICAL

Given the investment horizon of 90 days BioLife Sciences is expected to under-perform the JIN MEDICAL. In addition to that, BioLife Sciences is 2.99 times more volatile than JIN MEDICAL INTERNATIONAL. It trades about -0.22 of its total potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about -0.12 per unit of volatility. If you would invest  83.00  in JIN MEDICAL INTERNATIONAL on December 4, 2024 and sell it today you would lose (17.74) from holding JIN MEDICAL INTERNATIONAL or give up 21.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

BioLife Sciences  vs.  JIN MEDICAL INTERNATIONAL

BioLife Sciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioLife Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

JIN MEDICAL INTERNATIONAL

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JIN MEDICAL INTERNATIONAL are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, JIN MEDICAL may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with BioLife Sciences and JIN MEDICAL

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

The idea behind BioLife Sciences and JIN MEDICAL INTERNATIONAL 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.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.