Correlation Between Cofoe Medical and China Reform
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By analyzing existing cross correlation between Cofoe Medical Technology and China Reform Health, you can compare the effects of market volatilities on Cofoe Medical and China Reform 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 Cofoe Medical with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and China Reform.
Diversification Opportunities for Cofoe Medical and China Reform
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cofoe and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and Cofoe Medical 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 Cofoe Medical Technology are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and China Reform go up and down completely randomly.
Pair Corralation between Cofoe Medical and China Reform
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to generate 0.35 times more return on investment than China Reform. However, Cofoe Medical Technology is 2.87 times less risky than China Reform. It trades about 0.0 of its potential returns per unit of risk. China Reform Health is currently generating about 0.0 per unit of risk. If you would invest 3,787 in Cofoe Medical Technology on September 1, 2024 and sell it today you would lose (9.00) from holding Cofoe Medical Technology or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofoe Medical Technology vs. China Reform Health
Performance |
| Timeline |
| Cofoe Medical Technology |
| China Reform Health |
Cofoe Medical and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and China Reform
The main advantage of trading using opposite Cofoe Medical and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Cofoe Medical vs. Nanjing Putian Telecommunications | Cofoe Medical vs. Shenzhen Hifuture Electric | Cofoe Medical vs. Tianjin Realty Development | Cofoe Medical vs. Shenyang Huitian Thermal |
| China Reform vs. Servyou Software Group | China Reform vs. Ping An Insurance | China Reform vs. Dhc Software Co | China Reform vs. Shuhua Sports Co |
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.
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