Correlation Between Coloplast and Meituan
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By analyzing existing cross correlation between Coloplast AS and Meituan, you can compare the effects of market volatilities on Coloplast and Meituan 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 Coloplast with a short position of Meituan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and Meituan.
Diversification Opportunities for Coloplast and Meituan
Excellent diversification
The 3 months correlation between Coloplast and Meituan is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast AS and Meituan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meituan and Coloplast 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 Coloplast AS are associated (or correlated) with Meituan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meituan has no effect on the direction of Coloplast i.e., Coloplast and Meituan go up and down completely randomly.
Pair Corralation between Coloplast and Meituan
Assuming the 90 days trading horizon Coloplast AS is expected to generate 0.74 times more return on investment than Meituan. However, Coloplast AS is 1.36 times less risky than Meituan. It trades about -0.02 of its potential returns per unit of risk. Meituan is currently generating about -0.16 per unit of risk. If you would invest 12,025 in Coloplast AS on August 28, 2024 and sell it today you would lose (145.00) from holding Coloplast AS or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Coloplast AS vs. Meituan
Performance |
| Timeline |
| Coloplast AS |
| Meituan |
Coloplast and Meituan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast and Meituan
The main advantage of trading using opposite Coloplast and Meituan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast position performs unexpectedly, Meituan 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 Meituan will offset losses from the drop in Meituan's long position.| Coloplast vs. Haier Smart Home | Coloplast vs. Harmony Gold Mining | Coloplast vs. Corporate Office Properties | Coloplast vs. LANDSEA HOMES P |
| Meituan vs. BlueScope Steel Limited | Meituan vs. NORWEGIAN AIR SHUT | Meituan vs. DELTA AIR LINES | Meituan vs. Nippon Steel |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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