Correlation Between Cofoe Medical and Chongqing Changan
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By analyzing existing cross correlation between Cofoe Medical Technology and Chongqing Changan Automobile, you can compare the effects of market volatilities on Cofoe Medical and Chongqing Changan 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 Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Chongqing Changan.
Diversification Opportunities for Cofoe Medical and Chongqing Changan
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cofoe and Chongqing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan 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 Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Chongqing Changan go up and down completely randomly.
Pair Corralation between Cofoe Medical and Chongqing Changan
Assuming the 90 days trading horizon Cofoe Medical is expected to generate 23.33 times less return on investment than Chongqing Changan. In addition to that, Cofoe Medical is 1.07 times more volatile than Chongqing Changan Automobile. It trades about 0.0 of its total potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.08 per unit of volatility. If you would invest 350.00 in Chongqing Changan Automobile on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Chongqing Changan Automobile or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cofoe Medical Technology vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Cofoe Medical Technology |
| Chongqing Changan |
Cofoe Medical and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Chongqing Changan
The main advantage of trading using opposite Cofoe Medical and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan'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 |
| Chongqing Changan vs. Western Metal Materials | Chongqing Changan vs. China Minmetals Rare | Chongqing Changan vs. Miracll Chemicals Co | Chongqing Changan vs. Xiangtan Electrochemical Scientific |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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