Correlation Between Cofoe Medical and Holitech Technology
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By analyzing existing cross correlation between Cofoe Medical Technology and Holitech Technology Co, you can compare the effects of market volatilities on Cofoe Medical and Holitech Technology 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 Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Holitech Technology.
Diversification Opportunities for Cofoe Medical and Holitech Technology
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cofoe and Holitech is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology 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 Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Holitech Technology go up and down completely randomly.
Pair Corralation between Cofoe Medical and Holitech Technology
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to generate 0.48 times more return on investment than Holitech Technology. However, Cofoe Medical Technology is 2.1 times less risky than Holitech Technology. It trades about -0.26 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.23 per unit of risk. If you would invest 3,672 in Cofoe Medical Technology on October 25, 2024 and sell it today you would lose (302.00) from holding Cofoe Medical Technology or give up 8.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofoe Medical Technology vs. Holitech Technology Co
Performance |
| Timeline |
| Cofoe Medical Technology |
| Holitech Technology |
Cofoe Medical and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Holitech Technology
The main advantage of trading using opposite Cofoe Medical and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Holitech Technology 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.| Cofoe Medical vs. Agricultural Bank of | Cofoe Medical vs. Industrial and Commercial | Cofoe Medical vs. Bank of China | Cofoe Medical vs. China Construction Bank |
| Holitech Technology vs. Shandong Iron and | Holitech Technology vs. Baoshan Iron Steel | Holitech Technology vs. Sinocat Environmental Technology | Holitech Technology vs. Beijing Mainstreets Investment |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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