Correlation Between ADRIATIC METALS and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS and COFCO Joycome at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ADRIATIC METALS and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and COFCO Joycome Foods, you can compare the effects of market volatilities on ADRIATIC METALS and COFCO Joycome 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 ADRIATIC METALS with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and COFCO Joycome.
Diversification Opportunities for ADRIATIC METALS and COFCO Joycome
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ADRIATIC and COFCO is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and ADRIATIC METALS 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 ADRIATIC METALS LS 013355 are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of ADRIATIC METALS i.e., ADRIATIC METALS and COFCO Joycome go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and COFCO Joycome
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 0.95 times more return on investment than COFCO Joycome. However, ADRIATIC METALS LS 013355 is 1.05 times less risky than COFCO Joycome. It trades about 0.03 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about -0.01 per unit of risk. If you would invest 190.00 in ADRIATIC METALS LS 013355 on October 26, 2024 and sell it today you would earn a total of 46.00 from holding ADRIATIC METALS LS 013355 or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. COFCO Joycome Foods
Performance |
| Timeline |
| ADRIATIC METALS LS |
| COFCO Joycome Foods |
ADRIATIC METALS and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and COFCO Joycome
The main advantage of trading using opposite ADRIATIC METALS and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| ADRIATIC METALS vs. Rio Tinto Group | ADRIATIC METALS vs. Anglo American plc | ADRIATIC METALS vs. Mineral Resources Limited | ADRIATIC METALS vs. NEXA RESOURCES SA |
| COFCO Joycome vs. CN DATANG C | COFCO Joycome vs. DATAGROUP SE | COFCO Joycome vs. RYU Apparel | COFCO Joycome vs. SAN MIGUEL BREWERY |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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