Correlation Between COFCO Joycome and Mitsubishi Gas
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Mitsubishi Gas 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 Mitsubishi Gas 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 Mitsubishi Gas Chemical, you can compare the effects of market volatilities on COFCO Joycome and Mitsubishi Gas 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 Mitsubishi Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Mitsubishi Gas.
Diversification Opportunities for COFCO Joycome and Mitsubishi Gas
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between COFCO and Mitsubishi is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Mitsubishi Gas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Gas Chemical 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 Mitsubishi Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Gas Chemical has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Mitsubishi Gas go up and down completely randomly.
Pair Corralation between COFCO Joycome and Mitsubishi Gas
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the Mitsubishi Gas. In addition to that, COFCO Joycome is 2.06 times more volatile than Mitsubishi Gas Chemical. It trades about -0.22 of its total potential returns per unit of risk. Mitsubishi Gas Chemical is currently generating about -0.02 per unit of volatility. If you would invest 1,660 in Mitsubishi Gas Chemical on October 11, 2024 and sell it today you would lose (10.00) from holding Mitsubishi Gas Chemical or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Mitsubishi Gas Chemical
Performance |
| Timeline |
| COFCO Joycome Foods |
| Mitsubishi Gas Chemical |
COFCO Joycome and Mitsubishi Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Mitsubishi Gas
The main advantage of trading using opposite COFCO Joycome and Mitsubishi Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Mitsubishi Gas 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 Mitsubishi Gas will offset losses from the drop in Mitsubishi Gas' long position.| COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. NMI Holdings | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. Talanx AG |
| Mitsubishi Gas vs. CITIC Telecom International | Mitsubishi Gas vs. INTERSHOP Communications Aktiengesellschaft | Mitsubishi Gas vs. Comba Telecom Systems | Mitsubishi Gas vs. PREMIER 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |