Correlation Between JIN MEDICAL and Predictive Oncology

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

Diversification Opportunities for JIN MEDICAL and Predictive Oncology

-0.22

Correlation Coefficient

JIN MEDICAL  Predictive Oncology

Very good diversification

The 3 months correlation between JIN and Predictive is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding JIN MEDICAL INTERNATIONAL and Predictive Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predictive Oncology 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 Predictive Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predictive Oncology has no effect on the direction of JIN MEDICAL i.e., JIN MEDICAL and Predictive Oncology go up and down completely randomly.

Pair Corralation between JIN MEDICAL and Predictive Oncology

Given the investment horizon of 90 days JIN MEDICAL INTERNATIONAL is expected to under-perform the Predictive Oncology. But the stock apears to be less risky and, when comparing its historical volatility, JIN MEDICAL INTERNATIONAL is 1.53 times less risky than Predictive Oncology. The stock trades about 0.0 of its potential returns per unit of risk. The Predictive Oncology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  90.00  in Predictive Oncology on December 29, 2024 and sell it today you would earn a total of  55.00  from holding Predictive Oncology or generate 61.11% return on investment over 90 days.

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

JIN MEDICAL INTERNATIONAL  vs.  Predictive Oncology

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.

Predictive Oncology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Predictive Oncology are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Predictive Oncology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JIN MEDICAL and Predictive Oncology

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

The idea behind JIN MEDICAL INTERNATIONAL and Predictive Oncology 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.