Correlation Between Cirmaker Technology and JIN MEDICAL

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

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

Diversification Opportunities for Cirmaker Technology and JIN MEDICAL

0.44

Correlation Coefficient

Cirmaker Technology  JIN MEDICAL

Very weak diversification

The 3 months correlation between Cirmaker and JIN is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cirmaker Technology 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 Cirmaker Technology 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 Cirmaker Technology 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 Cirmaker Technology i.e., Cirmaker Technology and JIN MEDICAL go up and down completely randomly.

Pair Corralation between Cirmaker Technology and JIN MEDICAL

Given the investment horizon of 90 days Cirmaker Technology is expected to generate 2.61 times more return on investment than JIN MEDICAL. However, Cirmaker Technology is 2.61 times more volatile than JIN MEDICAL INTERNATIONAL. It trades about 0.03 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about 0.07 per unit of risk. If you would invest  3.30  in Cirmaker Technology on October 9, 2024 and sell it today you would earn a total of  2.10  from holding Cirmaker Technology or generate 63.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	90.51%
Values	Daily Returns

Cirmaker Technology  vs.  JIN MEDICAL INTERNATIONAL

Cirmaker Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cirmaker Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Cirmaker Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

JIN MEDICAL INTERNATIONAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JIN MEDICAL INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Cirmaker Technology and JIN MEDICAL

The main advantage of trading using opposite Cirmaker Technology and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirmaker Technology 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 Cirmaker Technology 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.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.