Correlation Between COFCO Joycome and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Canadian Utilities at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining COFCO Joycome and Canadian Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Canadian Utilities Limited, you can compare the effects of market volatilities on COFCO Joycome and Canadian Utilities 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 Joycome with a short position of Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Canadian Utilities.
Diversification Opportunities for COFCO Joycome and Canadian Utilities
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between COFCO and Canadian is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Canadian Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities and COFCO Joycome 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 Joycome Foods are associated (or correlated) with Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Canadian Utilities go up and down completely randomly.
Pair Corralation between COFCO Joycome and Canadian Utilities
Assuming the 90 days horizon COFCO Joycome Foods is expected to generate 4.91 times more return on investment than Canadian Utilities. However, COFCO Joycome is 4.91 times more volatile than Canadian Utilities Limited. It trades about 0.1 of its potential returns per unit of risk. Canadian Utilities Limited is currently generating about 0.05 per unit of risk. If you would invest 16.00 in COFCO Joycome Foods on April 21, 2025 and sell it today you would earn a total of 3.00 from holding COFCO Joycome Foods or generate 18.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
COFCO Joycome Foods vs. Canadian Utilities Limited
Performance |
Timeline |
COFCO Joycome Foods |
Canadian Utilities |
COFCO Joycome and Canadian Utilities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COFCO Joycome and Canadian Utilities
The main advantage of trading using opposite COFCO Joycome and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Canadian Utilities 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 Canadian Utilities will offset losses from the drop in Canadian Utilities' long position.COFCO Joycome vs. PRINCIPAL FINANCIAL | COFCO Joycome vs. Advanced Medical Solutions | COFCO Joycome vs. UNIQA INSURANCE GR | COFCO Joycome vs. Apollo Medical Holdings |
Canadian Utilities vs. Metallurgical of | Canadian Utilities vs. Performance Food Group | Canadian Utilities vs. Lion One Metals | Canadian Utilities vs. MCEWEN MINING INC |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |