Correlation Between Cofoe Medical and Touchstone International
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By analyzing existing cross correlation between Cofoe Medical Technology and Touchstone International Medical, you can compare the effects of market volatilities on Cofoe Medical and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Touchstone International.
Diversification Opportunities for Cofoe Medical and Touchstone International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cofoe and Touchstone is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Touchstone International go up and down completely randomly.
Pair Corralation between Cofoe Medical and Touchstone International
Assuming the 90 days trading horizon Cofoe Medical is expected to generate 2.36 times less return on investment than Touchstone International. In addition to that, Cofoe Medical is 1.13 times more volatile than Touchstone International Medical. It trades about 0.04 of its total potential returns per unit of risk. Touchstone International Medical is currently generating about 0.1 per unit of volatility. If you would invest 1,452 in Touchstone International Medical on September 3, 2024 and sell it today you would earn a total of 490.00 from holding Touchstone International Medical or generate 33.75% 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. Touchstone International Medic
Performance |
| Timeline |
| Cofoe Medical Technology |
| Touchstone International |
Cofoe Medical and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Touchstone International
The main advantage of trading using opposite Cofoe Medical and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Cofoe Medical vs. Chengdu Kanghua Biological | Cofoe Medical vs. Beijing Wantai Biological | Cofoe Medical vs. Suzhou Novoprotein Scientific | Cofoe Medical vs. Aluminum Corp of |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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