Correlation Between JIADE LIMITED and Omni Health

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

By analyzing existing cross correlation between JIADE LIMITED Common and Omni Health, you can compare the effects of market volatilities on JIADE LIMITED and Omni Health 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 JIADE LIMITED with a short position of Omni Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIADE LIMITED and Omni Health.

Diversification Opportunities for JIADE LIMITED and Omni Health

0.0

Correlation Coefficient

JIADE LIMITED  Omni Health

Pay attention - limited upside

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

Pair Corralation between JIADE LIMITED and Omni Health

If you would invest  70.00  in JIADE LIMITED Common on December 27, 2024 and sell it today you would lose (5.00) from holding JIADE LIMITED Common or give up 7.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

JIADE LIMITED Common  vs.  Omni Health

JIADE LIMITED Common

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JIADE LIMITED Common are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, JIADE LIMITED reported solid returns over the last few months and may actually be approaching a breakup point.

Omni Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Omni Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Omni Health is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with JIADE LIMITED and Omni Health

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

The idea behind JIADE LIMITED Common and Omni Health 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.