Correlation Between JIN MEDICAL and Masimo

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

Diversification Opportunities for JIN MEDICAL and Masimo

-0.84

Correlation Coefficient

JIN MEDICAL  Masimo

Pay attention - limited upside

The 3 months correlation between JIN and Masimo is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Masimo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masimo 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 Masimo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masimo has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Masimo go up and down completely randomly.

Pair Corralation between JIN MEDICAL and Masimo

Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to under-perform the Masimo. In addition to that, JIN MEDICAL is 3.8 times more volatile than Masimo. It trades about -0.15 of its total potential returns per unit of risk. Masimo is currently generating about 0.25 per unit of volatility. If you would invest  11,752  in Masimo on August 30, 2024 and sell it today you would earn a total of  5,337  from holding Masimo or generate 45.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

JIN MEDICAL INTERNATIONAL  vs.  Masimo

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 weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Masimo

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Masimo are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Masimo demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JIN MEDICAL and Masimo

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

The idea behind JIN MEDICAL INTERNATIONAL and Masimo 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.