Correlation Between GKHT Medical and Cofoe Medical
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By analyzing existing cross correlation between GKHT Medical Technology and Cofoe Medical Technology, you can compare the effects of market volatilities on GKHT Medical and Cofoe 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 GKHT Medical with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Cofoe Medical.
Diversification Opportunities for GKHT Medical and Cofoe Medical
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GKHT and Cofoe is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology and Cofoe Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofoe Medical Technology and GKHT 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 GKHT Medical Technology are associated (or correlated) with Cofoe Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofoe Medical Technology has no effect on the direction of GKHT Medical i.e., GKHT Medical and Cofoe Medical go up and down completely randomly.
Pair Corralation between GKHT Medical and Cofoe Medical
Assuming the 90 days trading horizon GKHT Medical Technology is expected to generate 1.57 times more return on investment than Cofoe Medical. However, GKHT Medical is 1.57 times more volatile than Cofoe Medical Technology. It trades about -0.07 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about -0.14 per unit of risk. If you would invest 1,211 in GKHT Medical Technology on August 29, 2024 and sell it today you would lose (60.00) from holding GKHT Medical Technology or give up 4.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GKHT Medical Technology vs. Cofoe Medical Technology
Performance |
| Timeline |
| GKHT Medical Technology |
| Cofoe Medical Technology |
GKHT Medical and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GKHT Medical and Cofoe Medical
The main advantage of trading using opposite GKHT Medical and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical position performs unexpectedly, Cofoe 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 Cofoe Medical will offset losses from the drop in Cofoe Medical's long position.| GKHT Medical vs. Ningbo Ligong Online | GKHT Medical vs. Guangdong Advertising Co | GKHT Medical vs. Hainan Haiqi Transportation | GKHT Medical vs. Jinhui Liquor Co |
| Cofoe Medical vs. Industrial and Commercial | Cofoe Medical vs. China Construction Bank | Cofoe Medical vs. Agricultural Bank of | Cofoe 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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