Correlation Between COFCO Joycome and SIEM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and SIEM OFFSHORE 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 SIEM OFFSHORE 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 SIEM OFFSHORE NEW, you can compare the effects of market volatilities on COFCO Joycome and SIEM OFFSHORE 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 SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and SIEM OFFSHORE.
Diversification Opportunities for COFCO Joycome and SIEM OFFSHORE
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COFCO and SIEM is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW 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 SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and SIEM OFFSHORE go up and down completely randomly.
Pair Corralation between COFCO Joycome and SIEM OFFSHORE
Assuming the 90 days horizon COFCO Joycome Foods is expected to generate 0.42 times more return on investment than SIEM OFFSHORE. However, COFCO Joycome Foods is 2.41 times less risky than SIEM OFFSHORE. It trades about 0.01 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about -0.08 per unit of risk. If you would invest 16.00 in COFCO Joycome Foods on October 30, 2024 and sell it today you would earn a total of 0.00 from holding COFCO Joycome Foods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. SIEM OFFSHORE NEW
Performance |
| Timeline |
| COFCO Joycome Foods |
| SIEM OFFSHORE NEW |
COFCO Joycome and SIEM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and SIEM OFFSHORE
The main advantage of trading using opposite COFCO Joycome and SIEM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, SIEM OFFSHORE 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 SIEM OFFSHORE will offset losses from the drop in SIEM OFFSHORE's long position.| COFCO Joycome vs. General Mills | COFCO Joycome vs. Danone SA | COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Kellogg Company |
| SIEM OFFSHORE vs. PATTIES FOODS | SIEM OFFSHORE vs. TreeHouse Foods | SIEM OFFSHORE vs. GOODYEAR T RUBBER | SIEM OFFSHORE vs. Lery Seafood Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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