Correlation Between COFCO Joycome and Haier Smart
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Haier Smart 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 Haier Smart 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 Haier Smart Home, you can compare the effects of market volatilities on COFCO Joycome and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Haier Smart.
Diversification Opportunities for COFCO Joycome and Haier Smart
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COFCO and Haier is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Haier Smart go up and down completely randomly.
Pair Corralation between COFCO Joycome and Haier Smart
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the Haier Smart. But the stock apears to be less risky and, when comparing its historical volatility, COFCO Joycome Foods is 1.1 times less risky than Haier Smart. The stock trades about -0.24 of its potential returns per unit of risk. The Haier Smart Home is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 178.00 in Haier Smart Home on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Haier Smart Home or generate 0.0% 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. Haier Smart Home
Performance |
| Timeline |
| COFCO Joycome Foods |
| Haier Smart Home |
COFCO Joycome and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Haier Smart
The main advantage of trading using opposite COFCO Joycome and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| COFCO Joycome vs. General Mills | COFCO Joycome vs. Danone SA | COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Kellogg Company |
| Haier Smart vs. TreeHouse Foods | Haier Smart vs. Thai Beverage Public | Haier Smart vs. Maple Leaf Foods | Haier Smart vs. COFCO Joycome Foods |
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.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |