Correlation Between Techshine Electronics and Cofoe Medical
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By analyzing existing cross correlation between Techshine Electronics Co and Cofoe Medical Technology, you can compare the effects of market volatilities on Techshine Electronics 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 Techshine Electronics with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Cofoe Medical.
Diversification Opportunities for Techshine Electronics and Cofoe Medical
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Techshine and Cofoe is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co 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 Techshine Electronics 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 Techshine Electronics Co 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 Techshine Electronics i.e., Techshine Electronics and Cofoe Medical go up and down completely randomly.
Pair Corralation between Techshine Electronics and Cofoe Medical
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 1.99 times more return on investment than Cofoe Medical. However, Techshine Electronics is 1.99 times more volatile than Cofoe Medical Technology. It trades about 0.12 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about -0.07 per unit of risk. If you would invest 1,979 in Techshine Electronics Co on November 3, 2024 and sell it today you would earn a total of 120.00 from holding Techshine Electronics Co or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techshine Electronics Co vs. Cofoe Medical Technology
Performance |
| Timeline |
| Techshine Electronics |
| Cofoe Medical Technology |
Techshine Electronics and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techshine Electronics and Cofoe Medical
The main advantage of trading using opposite Techshine Electronics and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics 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.The idea behind Techshine Electronics Co and Cofoe Medical Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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