Correlation Between COFCO Joycome and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and ADRIATIC METALS 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on COFCO Joycome and ADRIATIC METALS 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 ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and ADRIATIC METALS.
Diversification Opportunities for COFCO Joycome and ADRIATIC METALS
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COFCO and ADRIATIC is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS 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 ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between COFCO Joycome and ADRIATIC METALS
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the ADRIATIC METALS. But the stock apears to be less risky and, when comparing its historical volatility, COFCO Joycome Foods is 1.03 times less risky than ADRIATIC METALS. The stock trades about -0.23 of its potential returns per unit of risk. The ADRIATIC METALS LS 013355 is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 240.00 in ADRIATIC METALS LS 013355 on October 12, 2024 and sell it today you would lose (16.00) from holding ADRIATIC METALS LS 013355 or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| COFCO Joycome Foods |
| ADRIATIC METALS LS |
COFCO Joycome and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and ADRIATIC METALS
The main advantage of trading using opposite COFCO Joycome and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. NMI Holdings | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. Talanx AG |
| ADRIATIC METALS vs. British American Tobacco | ADRIATIC METALS vs. JAPAN TOBACCO UNSPADR12 | ADRIATIC METALS vs. Nomad Foods | ADRIATIC METALS vs. INDOFOOD AGRI RES |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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