Correlation Between Beijing HuaYuanYiTong and Cofoe Medical
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By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Cofoe Medical Technology, you can compare the effects of market volatilities on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Cofoe Medical.
Diversification Opportunities for Beijing HuaYuanYiTong and Cofoe Medical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Cofoe is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal 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 Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong Thermal 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 Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Cofoe Medical go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Cofoe Medical
Assuming the 90 days trading horizon Beijing HuaYuanYiTong Thermal is expected to under-perform the Cofoe Medical. In addition to that, Beijing HuaYuanYiTong is 1.55 times more volatile than Cofoe Medical Technology. It trades about -0.07 of its total potential returns per unit of risk. Cofoe Medical Technology is currently generating about -0.02 per unit of volatility. If you would invest 3,880 in Cofoe Medical Technology on September 20, 2024 and sell it today you would lose (41.00) from holding Cofoe Medical Technology or give up 1.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Cofoe Medical Technology
Performance |
Timeline |
Beijing HuaYuanYiTong |
Cofoe Medical Technology |
Beijing HuaYuanYiTong and Cofoe Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing HuaYuanYiTong and Cofoe Medical
The main advantage of trading using opposite Beijing HuaYuanYiTong and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong 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.Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong vs. Loctek Ergonomic Technology |
Cofoe Medical vs. Beijing HuaYuanYiTong Thermal | Cofoe Medical vs. Jiaozuo Wanfang Aluminum | Cofoe Medical vs. China Nonferrous Metal | Cofoe Medical vs. CITIC Metal 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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