Correlation Between Cofoe Medical and Techshine Electronics
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By analyzing existing cross correlation between Cofoe Medical Technology and Techshine Electronics Co, you can compare the effects of market volatilities on Cofoe Medical and Techshine Electronics 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 Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Techshine Electronics.
Diversification Opportunities for Cofoe Medical and Techshine Electronics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cofoe and Techshine is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics 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 Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Techshine Electronics go up and down completely randomly.
Pair Corralation between Cofoe Medical and Techshine Electronics
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to under-perform the Techshine Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Cofoe Medical Technology is 1.63 times less risky than Techshine Electronics. The stock trades about -0.09 of its potential returns per unit of risk. The Techshine Electronics Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,978 in Techshine Electronics Co on October 24, 2024 and sell it today you would earn a total of 200.00 from holding Techshine Electronics Co or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofoe Medical Technology vs. Techshine Electronics Co
Performance |
| Timeline |
| Cofoe Medical Technology |
| Techshine Electronics |
Cofoe Medical and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Techshine Electronics
The main advantage of trading using opposite Cofoe Medical and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.| Cofoe Medical vs. Techshine Electronics Co | Cofoe Medical vs. Beijing Seeyon Internet | Cofoe Medical vs. Caihong Display Devices | Cofoe Medical vs. Jiangyin Jianghua Microelectronics |
| Techshine Electronics vs. Glodon Software Co | Techshine Electronics vs. Guangdong Silvere Sci | Techshine Electronics vs. Inspur Software Co | Techshine Electronics vs. Guocheng Mining 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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