Correlation Between Cofco Biochemical and Western Superconducting
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By analyzing existing cross correlation between Cofco Biochemical Anhui and Western Superconducting Tech, you can compare the effects of market volatilities on Cofco Biochemical and Western Superconducting 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 Cofco Biochemical with a short position of Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cofco Biochemical and Western Superconducting.
Diversification Opportunities for Cofco Biochemical and Western Superconducting
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cofco and Western is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cofco Biochemical Anhui and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting and Cofco Biochemical 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 Cofco Biochemical Anhui are associated (or correlated) with Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Cofco Biochemical i.e., Cofco Biochemical and Western Superconducting go up and down completely randomly.
Pair Corralation between Cofco Biochemical and Western Superconducting
Assuming the 90 days trading horizon Cofco Biochemical Anhui is expected to generate 0.68 times more return on investment than Western Superconducting. However, Cofco Biochemical Anhui is 1.47 times less risky than Western Superconducting. It trades about -0.07 of its potential returns per unit of risk. Western Superconducting Tech is currently generating about -0.15 per unit of risk. If you would invest 595.00 in Cofco Biochemical Anhui on September 25, 2024 and sell it today you would lose (29.00) from holding Cofco Biochemical Anhui or give up 4.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Cofco Biochemical Anhui vs. Western Superconducting Tech
Performance |
Timeline |
Cofco Biochemical Anhui |
Western Superconducting |
Cofco Biochemical and Western Superconducting Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cofco Biochemical and Western Superconducting
The main advantage of trading using opposite Cofco Biochemical and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cofco Biochemical position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting's long position.Cofco Biochemical vs. Western Superconducting Tech | Cofco Biochemical vs. Hubei Forbon Technology | Cofco Biochemical vs. Kuang Chi Technologies | Cofco Biochemical vs. INKON Life Technology |
Western Superconducting vs. Bank of China | Western Superconducting vs. Kweichow Moutai Co | Western Superconducting vs. PetroChina Co Ltd | Western Superconducting vs. Bank of Communications |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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