Correlation Between COFCO Joycome and MACOM Technology
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and MACOM Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining COFCO Joycome and MACOM Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and MACOM Technology Solutions, you can compare the effects of market volatilities on COFCO Joycome and MACOM Technology 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 COFCO Joycome with a short position of MACOM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and MACOM Technology.
Diversification Opportunities for COFCO Joycome and MACOM Technology
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COFCO and MACOM is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and MACOM Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MACOM Technology Sol and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with MACOM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MACOM Technology Sol has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and MACOM Technology go up and down completely randomly.
Pair Corralation between COFCO Joycome and MACOM Technology
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the MACOM Technology. In addition to that, COFCO Joycome is 1.08 times more volatile than MACOM Technology Solutions. It trades about -0.12 of its total potential returns per unit of risk. MACOM Technology Solutions is currently generating about 0.05 per unit of volatility. If you would invest 13,400 in MACOM Technology Solutions on October 17, 2024 and sell it today you would earn a total of 200.00 from holding MACOM Technology Solutions or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. MACOM Technology Solutions
Performance |
| Timeline |
| COFCO Joycome Foods |
| MACOM Technology Sol |
COFCO Joycome and MACOM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and MACOM Technology
The main advantage of trading using opposite COFCO Joycome and MACOM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, MACOM Technology 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 MACOM Technology will offset losses from the drop in MACOM Technology's long position.| COFCO Joycome vs. Stag Industrial | COFCO Joycome vs. BII Railway Transportation | COFCO Joycome vs. ADRIATIC METALS LS 013355 | COFCO Joycome vs. NTG Nordic Transport |
| MACOM Technology vs. Astral Foods Limited | MACOM Technology vs. COFCO Joycome Foods | MACOM Technology vs. Aedas Homes SA | MACOM Technology vs. TYSON FOODS A |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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