Correlation Between JIN MEDICAL and Akoya Biosciences

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

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

Diversification Opportunities for JIN MEDICAL and Akoya Biosciences

0.21

Correlation Coefficient

JIN MEDICAL  Akoya Biosciences

Modest diversification

The 3 months correlation between JIN and Akoya is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and JIN MEDICAL 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 JIN MEDICAL INTERNATIONAL are associated (or correlated) with Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Akoya Biosciences go up and down completely randomly.

Pair Corralation between JIN MEDICAL and Akoya Biosciences

Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to generate 1.77 times more return on investment than Akoya Biosciences. However, JIN MEDICAL is 1.77 times more volatile than Akoya Biosciences. It trades about -0.01 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.08 per unit of risk. If you would invest  92.00  in JIN MEDICAL INTERNATIONAL on December 1, 2024 and sell it today you would lose (23.00) from holding JIN MEDICAL INTERNATIONAL or give up 25.0% of portfolio value over 90 days.

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

JIN MEDICAL INTERNATIONAL  vs.  Akoya Biosciences

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 latest unsteady performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Akoya Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akoya Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with JIN MEDICAL and Akoya Biosciences

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

The idea behind JIN MEDICAL INTERNATIONAL and Akoya Biosciences 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.