Correlation Between Cofoe Medical and Shanghai Ziyan
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By analyzing existing cross correlation between Cofoe Medical Technology and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Cofoe Medical and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Shanghai Ziyan.
Diversification Opportunities for Cofoe Medical and Shanghai Ziyan
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cofoe and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Cofoe Medical and Shanghai Ziyan
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to generate 1.21 times more return on investment than Shanghai Ziyan. However, Cofoe Medical is 1.21 times more volatile than Shanghai Ziyan Foods. It trades about 0.02 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.02 per unit of risk. If you would invest 3,590 in Cofoe Medical Technology on September 4, 2024 and sell it today you would earn a total of 221.00 from holding Cofoe Medical Technology or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cofoe Medical Technology vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Cofoe Medical Technology |
| Shanghai Ziyan Foods |
Cofoe Medical and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Shanghai Ziyan
The main advantage of trading using opposite Cofoe Medical and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Cofoe Medical vs. Kweichow Moutai Co | Cofoe Medical vs. Contemporary Amperex Technology | Cofoe Medical vs. G bits Network Technology | Cofoe Medical vs. Beijing Roborock Technology |
| Shanghai Ziyan vs. Holitech Technology Co | Shanghai Ziyan vs. Heilongjiang Transport Development | Shanghai Ziyan vs. Hainan Haiqi Transportation | Shanghai Ziyan vs. Hubei Forbon Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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