Correlation Between COFCO Joycome and Snowflake
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Snowflake 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 Snowflake 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 Snowflake, you can compare the effects of market volatilities on COFCO Joycome and Snowflake 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 Snowflake. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Snowflake.
Diversification Opportunities for COFCO Joycome and Snowflake
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COFCO and Snowflake is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Snowflake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snowflake 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 Snowflake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snowflake has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Snowflake go up and down completely randomly.
Pair Corralation between COFCO Joycome and Snowflake
If you would invest 15,846 in Snowflake on November 7, 2024 and sell it today you would earn a total of 2,304 from holding Snowflake or generate 14.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Snowflake
Performance |
| Timeline |
| COFCO Joycome Foods |
| Snowflake |
COFCO Joycome and Snowflake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Snowflake
The main advantage of trading using opposite COFCO Joycome and Snowflake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Snowflake 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 Snowflake will offset losses from the drop in Snowflake's long position.| COFCO Joycome vs. MARKET VECTR RETAIL | COFCO Joycome vs. Phibro Animal Health | COFCO Joycome vs. CARDINAL HEALTH | COFCO Joycome vs. National Retail Properties |
| Snowflake vs. Soken Chemical Engineering | Snowflake vs. KINGBOARD CHEMICAL | Snowflake vs. INDO RAMA SYNTHETIC | Snowflake vs. FAST RETAIL ADR |
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 Stocks Directory module to find actively traded stocks across global markets.
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