Correlation Between JD Health and Jack Nathan

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

By analyzing existing cross correlation between JD Health International and Jack Nathan Medical, you can compare the effects of market volatilities on JD Health and Jack Nathan 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 JD Health with a short position of Jack Nathan. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Health and Jack Nathan.

Diversification Opportunities for JD Health and Jack Nathan

0.0

Correlation Coefficient

JD Health  Jack Nathan

Pay attention - limited upside

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

Pair Corralation between JD Health and Jack Nathan

If you would invest  0.90  in Jack Nathan Medical on December 28, 2024 and sell it today you would earn a total of  1.70  from holding Jack Nathan Medical or generate 188.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

JD Health International  vs.  Jack Nathan Medical

JD Health International

Risk-Adjusted Performance

Very Weak

Over the last 90 days JD Health International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, JD Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jack Nathan Medical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jack Nathan Medical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Jack Nathan reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JD Health and Jack Nathan

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

The idea behind JD Health International and Jack Nathan 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.