Correlation Between COFCO Joycome and BANK CENTRAL
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and BANK CENTRAL 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 BANK CENTRAL 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 BANK CENTRAL ASIA, you can compare the effects of market volatilities on COFCO Joycome and BANK CENTRAL 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 BANK CENTRAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and BANK CENTRAL.
Diversification Opportunities for COFCO Joycome and BANK CENTRAL
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COFCO and BANK is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and BANK CENTRAL ASIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK CENTRAL ASIA 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 BANK CENTRAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK CENTRAL ASIA has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and BANK CENTRAL go up and down completely randomly.
Pair Corralation between COFCO Joycome and BANK CENTRAL
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the BANK CENTRAL. In addition to that, COFCO Joycome is 2.03 times more volatile than BANK CENTRAL ASIA. It trades about -0.04 of its total potential returns per unit of risk. BANK CENTRAL ASIA is currently generating about 0.13 per unit of volatility. If you would invest 56.00 in BANK CENTRAL ASIA on September 12, 2024 and sell it today you would earn a total of 3.00 from holding BANK CENTRAL ASIA or generate 5.36% 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. BANK CENTRAL ASIA
Performance |
| Timeline |
| COFCO Joycome Foods |
| BANK CENTRAL ASIA |
COFCO Joycome and BANK CENTRAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and BANK CENTRAL
The main advantage of trading using opposite COFCO Joycome and BANK CENTRAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, BANK CENTRAL 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 BANK CENTRAL will offset losses from the drop in BANK CENTRAL's long position.| COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. NorAm Drilling AS |
| BANK CENTRAL vs. NISSIN FOODS HLDGS | BANK CENTRAL vs. COFCO Joycome Foods | BANK CENTRAL vs. Public Storage | BANK CENTRAL vs. JJ SNACK 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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