Correlation Between Great Sun and Cofoe Medical
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By analyzing existing cross correlation between Great Sun Foods Co and Cofoe Medical Technology, you can compare the effects of market volatilities on Great Sun 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 Great Sun with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Cofoe Medical.
Diversification Opportunities for Great Sun and Cofoe Medical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Cofoe is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods 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 Great Sun 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 Great Sun Foods 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 Great Sun i.e., Great Sun and Cofoe Medical go up and down completely randomly.
Pair Corralation between Great Sun and Cofoe Medical
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.34 times more return on investment than Cofoe Medical. However, Great Sun is 1.34 times more volatile than Cofoe Medical Technology. It trades about 0.05 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about -0.08 per unit of risk. If you would invest 515.00 in Great Sun Foods Co on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Great Sun Foods Co or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Cofoe Medical Technology
Performance |
| Timeline |
| Great Sun Foods |
| Cofoe Medical Technology |
Great Sun and Cofoe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Cofoe Medical
The main advantage of trading using opposite Great Sun and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun 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.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Tianjin Realty Development | Great Sun vs. Kangyue Technology Co | Great Sun vs. Shenzhen Hifuture Electric |
| Cofoe Medical vs. Zhejiang Qianjiang Motorcycle | Cofoe Medical vs. Ningbo Fangzheng Automobile | Cofoe Medical vs. Great Sun Foods Co | Cofoe Medical vs. New Hope Dairy |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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