Correlation Between Cofoe Medical and Ningbo MedicalSystem
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By analyzing existing cross correlation between Cofoe Medical Technology and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Cofoe Medical and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Ningbo MedicalSystem.
Diversification Opportunities for Cofoe Medical and Ningbo MedicalSystem
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cofoe and Ningbo is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Cofoe Medical and Ningbo MedicalSystem
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to under-perform the Ningbo MedicalSystem. But the stock apears to be less risky and, when comparing its historical volatility, Cofoe Medical Technology is 1.51 times less risky than Ningbo MedicalSystem. The stock trades about -0.14 of its potential returns per unit of risk. The Ningbo MedicalSystem Biotechnology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,137 in Ningbo MedicalSystem Biotechnology on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Ningbo MedicalSystem Biotechnology or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofoe Medical Technology vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Cofoe Medical Technology |
| Ningbo MedicalSystem |
Cofoe Medical and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Ningbo MedicalSystem
The main advantage of trading using opposite Cofoe Medical and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Cofoe Medical vs. Industrial and Commercial | Cofoe Medical vs. China Construction Bank | Cofoe Medical vs. Agricultural Bank of | Cofoe Medical vs. Bank of China |
| Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. Bank of China |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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