Correlation Between Western Metal and Cofoe Medical
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By analyzing existing cross correlation between Western Metal Materials and Cofoe Medical Technology, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Cofoe Medical.
Diversification Opportunities for Western Metal and Cofoe Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Western and Cofoe is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Cofoe Medical go up and down completely randomly.
Pair Corralation between Western Metal and Cofoe Medical
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 0.98 times more return on investment than Cofoe Medical. However, Western Metal Materials is 1.02 times less risky than Cofoe Medical. It trades about 0.02 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about 0.01 per unit of risk. If you would invest 1,520 in Western Metal Materials on September 5, 2024 and sell it today you would earn a total of 98.00 from holding Western Metal Materials or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Western Metal Materials vs. Cofoe Medical Technology
Performance |
| Timeline |
| Western Metal Materials |
| Cofoe Medical Technology |
Western Metal and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Cofoe Medical
The main advantage of trading using opposite Western Metal and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
| Cofoe Medical vs. Shenyang Huitian Thermal | Cofoe Medical vs. Chengtun Mining Group | Cofoe Medical vs. Guangdong Jingyi Metal | Cofoe Medical vs. Western Metal Materials |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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