Correlation Between Cofoe Medical and Xiangyu Medical
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By analyzing existing cross correlation between Cofoe Medical Technology and Xiangyu Medical Co, you can compare the effects of market volatilities on Cofoe Medical and Xiangyu 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 Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofoe Medical and Xiangyu Medical.
Diversification Opportunities for Cofoe Medical and Xiangyu Medical
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cofoe and Xiangyu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cofoe Medical Technology and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical 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 Xiangyu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyu Medical has no effect on the direction of Cofoe Medical i.e., Cofoe Medical and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Cofoe Medical and Xiangyu Medical
Assuming the 90 days trading horizon Cofoe Medical Technology is expected to generate 0.79 times more return on investment than Xiangyu Medical. However, Cofoe Medical Technology is 1.27 times less risky than Xiangyu Medical. It trades about 0.02 of its potential returns per unit of risk. Xiangyu Medical Co is currently generating about -0.05 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. Xiangyu Medical Co
Performance |
| Timeline |
| Cofoe Medical Technology |
| Xiangyu Medical |
Cofoe Medical and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cofoe Medical and Xiangyu Medical
The main advantage of trading using opposite Cofoe Medical and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofoe Medical position performs unexpectedly, Xiangyu 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 Xiangyu Medical will offset losses from the drop in Xiangyu Medical'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 |
| Xiangyu Medical vs. HanS Laser Tech | Xiangyu Medical vs. Northking Information Technology | Xiangyu Medical vs. Duzhe Publishing Media | Xiangyu Medical vs. Guangzhou KingTeller 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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