Correlation Between Cofoe Medical and Guangdong Jinming
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By analyzing existing cross correlation between Cofoe Medical Technology and Guangdong Jinming Machinery, you can compare the effects of market volatilities on Cofoe Medical and Guangdong Jinming 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 Guangdong Jinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Guangdong Jinming.
Diversification Opportunities for Cofoe Medical and Guangdong Jinming
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cofoe and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Guangdong Jinming Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinming 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 Guangdong Jinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinming has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Guangdong Jinming go up and down completely randomly.
Pair Corralation between Cofoe Medical and Guangdong Jinming
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to under-perform the Guangdong Jinming. But the stock apears to be less risky and, when comparing its historical volatility, Cofoe Medical Technology is 1.69 times less risky than Guangdong Jinming. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Jinming Machinery is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Guangdong Jinming Machinery on September 5, 2024 and sell it today you would earn a total of 80.00 from holding Guangdong Jinming Machinery or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cofoe Medical Technology vs. Guangdong Jinming Machinery
Performance |
| Timeline |
| Cofoe Medical Technology |
| Guangdong Jinming |
Cofoe Medical and Guangdong Jinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Guangdong Jinming
The main advantage of trading using opposite Cofoe Medical and Guangdong Jinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Guangdong Jinming 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 Guangdong Jinming will offset losses from the drop in Guangdong Jinming's long position.| Cofoe Medical vs. Shenyang Huitian Thermal | Cofoe Medical vs. Chengtun Mining Group | Cofoe Medical vs. Guangdong Jingyi Metal | Cofoe Medical vs. Western Metal Materials |
| Guangdong Jinming vs. Dongguan Tarry Electronics | Guangdong Jinming vs. Cofoe Medical Technology | Guangdong Jinming vs. Integrated Electronic Systems | Guangdong Jinming vs. Jafron Biomedical 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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