Correlation Between New Hope and Cofoe Medical
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By analyzing existing cross correlation between New Hope Dairy and Cofoe Medical Technology, you can compare the effects of market volatilities on New Hope 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 New Hope with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Cofoe Medical.
Diversification Opportunities for New Hope and Cofoe Medical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between New and Cofoe is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy 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 New Hope 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 New Hope Dairy 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 New Hope i.e., New Hope and Cofoe Medical go up and down completely randomly.
Pair Corralation between New Hope and Cofoe Medical
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.7 times more return on investment than Cofoe Medical. However, New Hope is 1.7 times more volatile than Cofoe Medical Technology. It trades about 0.16 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about -0.08 per unit of risk. If you would invest 1,343 in New Hope Dairy on September 13, 2024 and sell it today you would earn a total of 146.00 from holding New Hope Dairy or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Cofoe Medical Technology
Performance |
| Timeline |
| New Hope Dairy |
| Cofoe Medical Technology |
New Hope and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Cofoe Medical
The main advantage of trading using opposite New Hope and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope 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.| New Hope vs. Metallurgical of | New Hope vs. Hefei Metalforming Mach | New Hope vs. Jiangsu Xinri E Vehicle | New Hope vs. Dongfeng Automobile Co |
| Cofoe Medical vs. Zhejiang Qianjiang Motorcycle | Cofoe Medical vs. Ningbo Fangzheng Automobile | Cofoe Medical vs. Great Sun Foods Co | Cofoe Medical vs. New Hope Dairy |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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