Correlation Between New China and Cofoe Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between New China Life and Cofoe Medical Technology, you can compare the effects of market volatilities on New China 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 New China with a short position of Cofoe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Cofoe Medical.
Diversification Opportunities for New China and Cofoe Medical
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Cofoe is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding New China Life 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 New China 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 New China Life 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 New China i.e., New China and Cofoe Medical go up and down completely randomly.
Pair Corralation between New China and Cofoe Medical
Assuming the 90 days trading horizon New China Life is expected to generate 1.1 times more return on investment than Cofoe Medical. However, New China is 1.1 times more volatile than Cofoe Medical Technology. It trades about 0.17 of its potential returns per unit of risk. Cofoe Medical Technology is currently generating about 0.11 per unit of risk. If you would invest 3,608 in New China Life on September 24, 2024 and sell it today you would earn a total of 1,382 from holding New China Life or generate 38.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
New China Life vs. Cofoe Medical Technology
Performance |
Timeline |
New China Life |
Cofoe Medical Technology |
New China and Cofoe Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with New China and Cofoe Medical
The main advantage of trading using opposite New China and Cofoe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.New China vs. Ye Chiu Metal | New China vs. Western Metal Materials | New China vs. Tianshan Aluminum Group | New China vs. Marssenger Kitchenware Co |
Cofoe Medical vs. Guangdong Marubi Biotechnology | Cofoe Medical vs. Liaoning Chengda Biotechnology | Cofoe Medical vs. Xinhua Winshare Publishing | Cofoe Medical vs. Beijing Kaiwen Education |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |