Correlation Between Sharps Technology and JIN MEDICAL

Can any of the company-specific risk be diversified away by investing in both Sharps 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 Sharps 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 Sharps Technology Warrant and JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on Sharps 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 Sharps Technology with a short position of JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and JIN MEDICAL.

Diversification Opportunities for Sharps Technology and JIN MEDICAL

0.29

Correlation Coefficient

Sharps Technology  JIN MEDICAL

Modest diversification

The 3 months correlation between Sharps and JIN is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology Warrant 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 Sharps 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 Sharps Technology Warrant 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 Sharps Technology i.e., Sharps Technology and JIN MEDICAL go up and down completely randomly.

Pair Corralation between Sharps Technology and JIN MEDICAL

Assuming the 90 days horizon Sharps Technology Warrant is expected to generate 2.51 times more return on investment than JIN MEDICAL. However, Sharps Technology is 2.51 times more volatile than JIN MEDICAL INTERNATIONAL. It trades about 0.02 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about 0.0 per unit of risk. If you would invest  4.01  in Sharps Technology Warrant on December 28, 2024 and sell it today you would lose (2.51) from holding Sharps Technology Warrant or give up 62.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.67%
Values	Daily Returns

Sharps Technology Warrant  vs.  JIN MEDICAL INTERNATIONAL

Sharps Technology Warrant

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sharps Technology Warrant are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Sharps Technology showed solid returns over the last few months and may actually be approaching a breakup point.

JIN MEDICAL INTERNATIONAL

Risk-Adjusted Performance

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 quite persistent basic indicators, JIN MEDICAL is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Sharps Technology and JIN MEDICAL

The main advantage of trading using opposite Sharps Technology and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps 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 Sharps Technology Warrant 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.