Correlation Between Cofoe Medical and Jafron Biomedical
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By analyzing existing cross correlation between Cofoe Medical Technology and Jafron Biomedical Co, you can compare the effects of market volatilities on Cofoe Medical and Jafron Biomedical 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 Jafron Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Jafron Biomedical.
Diversification Opportunities for Cofoe Medical and Jafron Biomedical
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cofoe and Jafron is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Jafron Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jafron Biomedical 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 Jafron Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jafron Biomedical has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Jafron Biomedical go up and down completely randomly.
Pair Corralation between Cofoe Medical and Jafron Biomedical
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to generate 0.8 times more return on investment than Jafron Biomedical. However, Cofoe Medical Technology is 1.25 times less risky than Jafron Biomedical. It trades about 0.0 of its potential returns per unit of risk. Jafron Biomedical Co is currently generating about -0.03 per unit of risk. If you would invest 3,787 in Cofoe Medical Technology on September 1, 2024 and sell it today you would lose (9.00) from holding Cofoe Medical Technology or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofoe Medical Technology vs. Jafron Biomedical Co
Performance |
| Timeline |
| Cofoe Medical Technology |
| Jafron Biomedical |
Cofoe Medical and Jafron Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Jafron Biomedical
The main advantage of trading using opposite Cofoe Medical and Jafron Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Jafron Biomedical 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 Jafron Biomedical will offset losses from the drop in Jafron Biomedical'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 |
| Jafron Biomedical vs. Nanjing Putian Telecommunications | Jafron Biomedical vs. Shenzhen Hifuture Electric | Jafron Biomedical vs. Tianjin Realty Development | Jafron Biomedical vs. Shenyang Huitian Thermal |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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