Correlation Between Cofoe Medical and Contec Medical
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By analyzing existing cross correlation between Cofoe Medical Technology and Contec Medical Systems, you can compare the effects of market volatilities on Cofoe Medical and Contec Medical 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 Contec Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Contec Medical.
Diversification Opportunities for Cofoe Medical and Contec Medical
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cofoe and Contec is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Contec Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contec Medical Systems 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 Contec Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contec Medical Systems has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Contec Medical go up and down completely randomly.
Pair Corralation between Cofoe Medical and Contec Medical
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to generate 0.73 times more return on investment than Contec Medical. However, Cofoe Medical Technology is 1.37 times less risky than Contec Medical. It trades about -0.14 of its potential returns per unit of risk. Contec Medical Systems is currently generating about -0.14 per unit of risk. If you would invest 3,935 in Cofoe Medical Technology on August 29, 2024 and sell it today you would lose (230.00) from holding Cofoe Medical Technology or give up 5.84% 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. Contec Medical Systems
Performance |
| Timeline |
| Cofoe Medical Technology |
| Contec Medical Systems |
Cofoe Medical and Contec Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Contec Medical
The main advantage of trading using opposite Cofoe Medical and Contec Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Contec Medical 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 Contec Medical will offset losses from the drop in Contec Medical's long position.| Cofoe Medical vs. Bank of China | Cofoe Medical vs. Kweichow Moutai Co | Cofoe Medical vs. PetroChina Co Ltd | Cofoe Medical vs. Bank of Communications |
| Contec Medical vs. Bank of China | Contec Medical vs. Kweichow Moutai Co | Contec Medical vs. PetroChina Co Ltd | Contec Medical vs. Bank of Communications |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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