Correlation Between Cowealth Medical and Progate
Can any of the company-specific risk be diversified away by investing in both Cowealth Medical and Progate 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 Cowealth Medical and Progate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cowealth Medical Holding and Progate Group, you can compare the effects of market volatilities on Cowealth Medical and Progate 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 Cowealth Medical with a short position of Progate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cowealth Medical and Progate.
Diversification Opportunities for Cowealth Medical and Progate
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cowealth and Progate is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cowealth Medical Holding and Progate Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progate Group and Cowealth 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 Cowealth Medical Holding are associated (or correlated) with Progate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progate Group has no effect on the direction of Cowealth Medical i.e., Cowealth Medical and Progate go up and down completely randomly.
Pair Corralation between Cowealth Medical and Progate
Assuming the 90 days trading horizon Cowealth Medical Holding is expected to generate 0.36 times more return on investment than Progate. However, Cowealth Medical Holding is 2.75 times less risky than Progate. It trades about -0.06 of its potential returns per unit of risk. Progate Group is currently generating about -0.06 per unit of risk. If you would invest 2,560 in Cowealth Medical Holding on September 4, 2024 and sell it today you would lose (490.00) from holding Cowealth Medical Holding or give up 19.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cowealth Medical Holding vs. Progate Group
Performance |
| Timeline |
| Cowealth Medical Holding |
| Progate Group |
Cowealth Medical and Progate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cowealth Medical and Progate
The main advantage of trading using opposite Cowealth Medical and Progate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cowealth Medical position performs unexpectedly, Progate 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 Progate will offset losses from the drop in Progate's long position.| Cowealth Medical vs. StShine Optical Co | Cowealth Medical vs. Bioteque | Cowealth Medical vs. TTY Biopharm Co | Cowealth Medical vs. Apex Biotechnology Corp |
| Progate vs. Taiwan Semiconductor Manufacturing | Progate vs. Hon Hai Precision | Progate vs. MediaTek | Progate vs. Chunghwa Telecom Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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