Correlation Between Innovative Medical and Cofoe Medical
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By analyzing existing cross correlation between Innovative Medical Management and Cofoe Medical Technology, you can compare the effects of market volatilities on Innovative Medical 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 Innovative Medical with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Cofoe Medical.
Diversification Opportunities for Innovative Medical and Cofoe Medical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovative and Cofoe is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management 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 Innovative 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 Innovative Medical Management 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 Innovative Medical i.e., Innovative Medical and Cofoe Medical go up and down completely randomly.
Pair Corralation between Innovative Medical and Cofoe Medical
Assuming the 90 days trading horizon Innovative Medical is expected to generate 2.1 times less return on investment than Cofoe Medical. In addition to that, Innovative Medical is 1.24 times more volatile than Cofoe Medical Technology. It trades about 0.01 of its total potential returns per unit of risk. Cofoe Medical Technology is currently generating about 0.02 per unit of volatility. If you would invest 3,533 in Cofoe Medical Technology on September 2, 2024 and sell it today you would earn a total of 245.00 from holding Cofoe Medical Technology or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Cofoe Medical Technology
Performance |
| Timeline |
| Innovative Medical |
| Cofoe Medical Technology |
Innovative Medical and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Cofoe Medical
The main advantage of trading using opposite Innovative Medical and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical 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.| Innovative Medical vs. China Life Insurance | Innovative Medical vs. Cinda Securities Co | Innovative Medical vs. Piotech Inc A | Innovative Medical vs. Dongxing Sec Co |
| Cofoe Medical vs. Nanjing Putian Telecommunications | Cofoe Medical vs. Shenzhen Hifuture Electric | Cofoe Medical vs. Tianjin Realty Development | Cofoe Medical vs. Shenyang Huitian Thermal |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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