Correlation Between Inner Mongolia and Cofoe Medical
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By analyzing existing cross correlation between Inner Mongolia Dazhong and Cofoe Medical Technology, you can compare the effects of market volatilities on Inner Mongolia and Cofoe Medical 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 Inner Mongolia with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Cofoe Medical.
Diversification Opportunities for Inner Mongolia and Cofoe Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inner and Cofoe is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia Dazhong and Cofoe Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofoe Medical Technology and Inner Mongolia 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 Inner Mongolia Dazhong are associated (or correlated) with Cofoe Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofoe Medical Technology has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Cofoe Medical go up and down completely randomly.
Pair Corralation between Inner Mongolia and Cofoe Medical
Assuming the 90 days trading horizon Inner Mongolia Dazhong is expected to generate 1.95 times more return on investment than Cofoe Medical. However, Inner Mongolia is 1.95 times more volatile than Cofoe Medical Technology. It trades about 0.1 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about -0.1 per unit of risk. If you would invest 919.00 in Inner Mongolia Dazhong on September 12, 2024 and sell it today you would earn a total of 64.00 from holding Inner Mongolia Dazhong or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia Dazhong vs. Cofoe Medical Technology
Performance |
| Timeline |
| Inner Mongolia Dazhong |
| Cofoe Medical Technology |
Inner Mongolia and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Cofoe Medical
The main advantage of trading using opposite Inner Mongolia and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Cofoe Medical 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 Cofoe Medical will offset losses from the drop in Cofoe Medical's long position.| Inner Mongolia vs. Zhengzhou Coal Mining | Inner Mongolia vs. Guangdong Qunxing Toys | Inner Mongolia vs. Xinjiang Baodi Mining | Inner Mongolia vs. Everdisplay Optronics Shanghai |
| Cofoe Medical vs. Cultural Investment Holdings | Cofoe Medical vs. Gome Telecom Equipment | Cofoe Medical vs. Holitech Technology Co | Cofoe Medical vs. Zotye Automobile Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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