Correlation Between COFCO Joycome and Monster Beverage
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Monster Beverage 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 Monster Beverage 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 Monster Beverage Corp, you can compare the effects of market volatilities on COFCO Joycome and Monster Beverage 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 Monster Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Monster Beverage.
Diversification Opportunities for COFCO Joycome and Monster Beverage
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COFCO and Monster is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Monster Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monster Beverage Corp 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 Monster Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monster Beverage Corp has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Monster Beverage go up and down completely randomly.
Pair Corralation between COFCO Joycome and Monster Beverage
Assuming the 90 days horizon COFCO Joycome Foods is expected to generate 1.28 times more return on investment than Monster Beverage. However, COFCO Joycome is 1.28 times more volatile than Monster Beverage Corp. It trades about 0.13 of its potential returns per unit of risk. Monster Beverage Corp is currently generating about 0.16 per unit of risk. If you would invest 16.00 in COFCO Joycome Foods on November 27, 2024 and sell it today you would earn a total of 1.00 from holding COFCO Joycome Foods or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Monster Beverage Corp
Performance |
| Timeline |
| COFCO Joycome Foods |
| Monster Beverage Corp |
COFCO Joycome and Monster Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Monster Beverage
The main advantage of trading using opposite COFCO Joycome and Monster Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Monster Beverage 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 Monster Beverage will offset losses from the drop in Monster Beverage's long position.| COFCO Joycome vs. Aluminum of | COFCO Joycome vs. ADRIATIC METALS LS 013355 | COFCO Joycome vs. DAIDO METAL TD | COFCO Joycome vs. PARKEN SPORT ENT |
| Monster Beverage vs. Japan Post Insurance | Monster Beverage vs. ZURICH INSURANCE GROUP | Monster Beverage vs. Chengdu PUTIAN Telecommunications | Monster Beverage vs. INSURANCE AUST GRP |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |