Correlation Between COFCO Joycome and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and BW 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 BW 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 BW OFFSHORE LTD, you can compare the effects of market volatilities on COFCO Joycome and BW 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 BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and BW OFFSHORE.
Diversification Opportunities for COFCO Joycome and BW OFFSHORE
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COFCO and XY81 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and BW OFFSHORE go up and down completely randomly.
Pair Corralation between COFCO Joycome and BW OFFSHORE
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the BW OFFSHORE. In addition to that, COFCO Joycome is 1.5 times more volatile than BW OFFSHORE LTD. It trades about -0.01 of its total potential returns per unit of risk. BW OFFSHORE LTD is currently generating about 0.04 per unit of volatility. If you would invest 192.00 in BW OFFSHORE LTD on October 27, 2024 and sell it today you would earn a total of 67.00 from holding BW OFFSHORE LTD or generate 34.9% 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. BW OFFSHORE LTD
Performance |
| Timeline |
| COFCO Joycome Foods |
| BW OFFSHORE LTD |
COFCO Joycome and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and BW OFFSHORE
The main advantage of trading using opposite COFCO Joycome and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, BW 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| COFCO Joycome vs. CN DATANG C | COFCO Joycome vs. DATAGROUP SE | COFCO Joycome vs. RYU Apparel | COFCO Joycome vs. SAN MIGUEL BREWERY |
| BW OFFSHORE vs. Monster Beverage Corp | BW OFFSHORE vs. Corporate Office Properties | BW OFFSHORE vs. Rayonier Advanced Materials | BW OFFSHORE vs. CENTURIA OFFICE REIT |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |