Correlation Between Cofoe Medical and Cowealth Medical
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By analyzing existing cross correlation between Cofoe Medical Technology and Cowealth Medical China, you can compare the effects of market volatilities on Cofoe Medical and Cowealth 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 Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Cowealth Medical.
Diversification Opportunities for Cofoe Medical and Cowealth Medical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cofoe and Cowealth is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Cowealth Medical China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical China 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 Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical China has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Cowealth Medical go up and down completely randomly.
Pair Corralation between Cofoe Medical and Cowealth Medical
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to under-perform the Cowealth Medical. But the stock apears to be less risky and, when comparing its historical volatility, Cofoe Medical Technology is 2.42 times less risky than Cowealth Medical. The stock trades about -0.14 of its potential returns per unit of risk. The Cowealth Medical China is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 720.00 in Cowealth Medical China on August 29, 2024 and sell it today you would earn a total of 33.00 from holding Cowealth Medical China or generate 4.58% 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. Cowealth Medical China
Performance |
| Timeline |
| Cofoe Medical Technology |
| Cowealth Medical China |
Cofoe Medical and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Cowealth Medical
The main advantage of trading using opposite Cofoe Medical and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Cowealth 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 Cowealth Medical will offset losses from the drop in Cowealth 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 |
| Cowealth Medical vs. Industrial and Commercial | Cowealth Medical vs. China Construction Bank | Cowealth Medical vs. Agricultural Bank of | Cowealth Medical 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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