Correlation Between JIN MEDICAL and GlucoTrack

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

Diversification Opportunities for JIN MEDICAL and GlucoTrack

0.25

Correlation Coefficient

JIN MEDICAL  GlucoTrack

Modest diversification

The 3 months correlation between JIN and GlucoTrack is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack 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 GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and GlucoTrack go up and down completely randomly.

Pair Corralation between JIN MEDICAL and GlucoTrack

Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to generate 1.01 times more return on investment than GlucoTrack. However, JIN MEDICAL is 1.01 times more volatile than GlucoTrack. It trades about 0.01 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.9 per unit of risk. If you would invest  80.00  in JIN MEDICAL INTERNATIONAL on November 29, 2024 and sell it today you would lose (3.00) from holding JIN MEDICAL INTERNATIONAL or give up 3.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

JIN MEDICAL INTERNATIONAL  vs.  GlucoTrack

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 latest stock price mess, may contribute to short-term losses for the institutional investors.

GlucoTrack

Risk-Adjusted Performance

Very Weak

Over the last 90 days GlucoTrack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with JIN MEDICAL and GlucoTrack

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

The idea behind JIN MEDICAL INTERNATIONAL and GlucoTrack 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.