Correlation Between JIN MEDICAL and Pro Dex

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

Diversification Opportunities for JIN MEDICAL and Pro Dex

0.35

Correlation Coefficient

JIN MEDICAL  Pro Dex

Weak diversification

The 3 months correlation between JIN and Pro is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex 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 Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Pro Dex go up and down completely randomly.

Pair Corralation between JIN MEDICAL and Pro Dex

Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to under-perform the Pro Dex. In addition to that, JIN MEDICAL is 1.57 times more volatile than Pro Dex. It trades about -0.06 of its total potential returns per unit of risk. Pro Dex is currently generating about 0.02 per unit of volatility. If you would invest  4,971  in Pro Dex on December 26, 2024 and sell it today you would lose (30.00) from holding Pro Dex or give up 0.6% 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.  Pro Dex

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 weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pro Dex

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pro Dex are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Pro Dex may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with JIN MEDICAL and Pro Dex

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

The idea behind JIN MEDICAL INTERNATIONAL and Pro Dex 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.