Correlation Between Funko and JIN MEDICAL

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

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

Diversification Opportunities for Funko and JIN MEDICAL

0.43

Correlation Coefficient

Funko  JIN MEDICAL

Very weak diversification

The 3 months correlation between Funko and JIN is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc 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 Funko 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 Funko Inc 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 Funko i.e., Funko and JIN MEDICAL go up and down completely randomly.

Pair Corralation between Funko and JIN MEDICAL

Given the investment horizon of 90 days Funko is expected to generate 4.97 times less return on investment than JIN MEDICAL. But when comparing it to its historical volatility, Funko Inc is 6.49 times less risky than JIN MEDICAL. It trades about 0.08 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  85.00  in JIN MEDICAL INTERNATIONAL on September 15, 2024 and sell it today you would lose (7.00) from holding JIN MEDICAL INTERNATIONAL or give up 8.24% of portfolio value over 90 days.

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

Funko Inc  vs.  JIN MEDICAL INTERNATIONAL

Funko Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward-looking signals, Funko may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Funko and JIN MEDICAL

The main advantage of trading using opposite Funko and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Funko 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 Funko Inc 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.