Correlation Between Cofoe Medical and Innovative Medical
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By analyzing existing cross correlation between Cofoe Medical Technology and Innovative Medical Management, you can compare the effects of market volatilities on Cofoe Medical and Innovative Medical 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 Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Innovative Medical.
Diversification Opportunities for Cofoe Medical and Innovative Medical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cofoe and Innovative is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical 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 Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Innovative Medical go up and down completely randomly.
Pair Corralation between Cofoe Medical and Innovative Medical
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to generate 0.81 times more return on investment than Innovative Medical. However, Cofoe Medical Technology is 1.24 times less risky than Innovative Medical. It trades about 0.02 of its potential returns per unit of risk. Innovative Medical Management is currently generating about 0.01 per unit of risk. If you would invest 3,533 in Cofoe Medical Technology on September 2, 2024 and sell it today you would earn a total of 245.00 from holding Cofoe Medical Technology or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofoe Medical Technology vs. Innovative Medical Management
Performance |
| Timeline |
| Cofoe Medical Technology |
| Innovative Medical |
Cofoe Medical and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Innovative Medical
The main advantage of trading using opposite Cofoe Medical and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Innovative Medical 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 Innovative Medical will offset losses from the drop in Innovative Medical'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 |
| Innovative Medical vs. China Life Insurance | Innovative Medical vs. Cinda Securities Co | Innovative Medical vs. Piotech Inc A | Innovative Medical vs. Dongxing Sec 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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