Correlation Between Allmed Medical and Cofoe Medical
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By analyzing existing cross correlation between Allmed Medical Products and Cofoe Medical Technology, you can compare the effects of market volatilities on Allmed 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 Allmed Medical with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Cofoe Medical.
Diversification Opportunities for Allmed Medical and Cofoe Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allmed and Cofoe is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products 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 Allmed 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 Allmed Medical Products 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 Allmed Medical i.e., Allmed Medical and Cofoe Medical go up and down completely randomly.
Pair Corralation between Allmed Medical and Cofoe Medical
Assuming the 90 days trading horizon Allmed Medical Products is expected to generate 1.84 times more return on investment than Cofoe Medical. However, Allmed Medical is 1.84 times more volatile than Cofoe Medical Technology. It trades about 0.07 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about -0.14 per unit of risk. If you would invest 872.00 in Allmed Medical Products on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Allmed Medical Products or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Cofoe Medical Technology
Performance |
| Timeline |
| Allmed Medical Products |
| Cofoe Medical Technology |
Allmed Medical and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Cofoe Medical
The main advantage of trading using opposite Allmed Medical and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed 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.| Allmed Medical vs. Industrial and Commercial | Allmed Medical vs. China Construction Bank | Allmed Medical vs. Agricultural Bank of | Allmed Medical vs. Bank of China |
| Cofoe Medical vs. Industrial and Commercial | Cofoe Medical vs. China Construction Bank | Cofoe Medical vs. Agricultural Bank of | Cofoe Medical vs. Bank of China |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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