Correlation Between COFCO Joycome and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and MAVEN WIRELESS 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on COFCO Joycome and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and MAVEN WIRELESS.
Diversification Opportunities for COFCO Joycome and MAVEN WIRELESS
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between COFCO and MAVEN is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between COFCO Joycome and MAVEN WIRELESS
Assuming the 90 days horizon COFCO Joycome Foods is expected to generate 1.98 times more return on investment than MAVEN WIRELESS. However, COFCO Joycome is 1.98 times more volatile than MAVEN WIRELESS SWEDEN. It trades about -0.05 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about -0.38 per unit of risk. If you would invest 17.00 in COFCO Joycome Foods on September 5, 2024 and sell it today you would lose (1.00) from holding COFCO Joycome Foods or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
COFCO Joycome Foods vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| COFCO Joycome Foods |
| MAVEN WIRELESS SWEDEN |
COFCO Joycome and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and MAVEN WIRELESS
The main advantage of trading using opposite COFCO Joycome and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| COFCO Joycome vs. QINGCI GAMES INC | COFCO Joycome vs. Lion One Metals | COFCO Joycome vs. PARKEN Sport Entertainment | COFCO Joycome vs. ANGLER GAMING PLC |
| MAVEN WIRELESS vs. Siamgas And Petrochemicals | MAVEN WIRELESS vs. UNIVMUSIC GRPADR050 | MAVEN WIRELESS vs. Mitsui Chemicals | MAVEN WIRELESS vs. Tencent Music Entertainment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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