Correlation Between JIN MEDICAL and Daxor

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

Diversification Opportunities for JIN MEDICAL and Daxor

-0.19

Correlation Coefficient

JIN MEDICAL  Daxor

Good diversification

The 3 months correlation between JIN and Daxor is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor 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 Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Daxor go up and down completely randomly.

Pair Corralation between JIN MEDICAL and Daxor

Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to generate 6.04 times more return on investment than Daxor. However, JIN MEDICAL is 6.04 times more volatile than Daxor. It trades about 0.05 of its potential returns per unit of risk. Daxor is currently generating about 0.04 per unit of risk. If you would invest  145.00  in JIN MEDICAL INTERNATIONAL on September 2, 2024 and sell it today you would lose (54.00) from holding JIN MEDICAL INTERNATIONAL or give up 37.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.18%
Values	Daily Returns

JIN MEDICAL INTERNATIONAL  vs.  Daxor

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 fragile 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.

Daxor

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Daxor are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Daxor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JIN MEDICAL and Daxor

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

The idea behind JIN MEDICAL INTERNATIONAL and Daxor 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .