Correlation Between JIN MEDICAL and InfuSystems Holdings

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

Diversification Opportunities for JIN MEDICAL and InfuSystems Holdings

0.26

Correlation Coefficient

JIN MEDICAL  InfuSystems Holdings

Modest diversification

The 3 months correlation between JIN and InfuSystems is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and InfuSystems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfuSystems Holdings 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 InfuSystems Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfuSystems Holdings has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and InfuSystems Holdings go up and down completely randomly.

Pair Corralation between JIN MEDICAL and InfuSystems Holdings

Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to generate 2.48 times more return on investment than InfuSystems Holdings. However, JIN MEDICAL is 2.48 times more volatile than InfuSystems Holdings. It trades about 0.0 of its potential returns per unit of risk. InfuSystems Holdings is currently generating about -0.12 per unit of risk. If you would invest  88.00  in JIN MEDICAL INTERNATIONAL on December 29, 2024 and sell it today you would lose (18.00) from holding JIN MEDICAL INTERNATIONAL or give up 20.45% 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.  InfuSystems Holdings

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

InfuSystems Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days InfuSystems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with JIN MEDICAL and InfuSystems Holdings

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

The idea behind JIN MEDICAL INTERNATIONAL and InfuSystems Holdings 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.