Correlation Between Supercomnet Technologies and Cosmos Technology
Can any of the company-specific risk be diversified away by investing in both Supercomnet Technologies and Cosmos Technology 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 Supercomnet Technologies and Cosmos Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercomnet Technologies Bhd and Cosmos Technology International, you can compare the effects of market volatilities on Supercomnet Technologies and Cosmos Technology 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 Supercomnet Technologies with a short position of Cosmos Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercomnet Technologies and Cosmos Technology.
Diversification Opportunities for Supercomnet Technologies and Cosmos Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Supercomnet and Cosmos is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Supercomnet Technologies Bhd and Cosmos Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Technology and Supercomnet Technologies 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 Supercomnet Technologies Bhd are associated (or correlated) with Cosmos Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Technology has no effect on the direction of Supercomnet Technologies i.e., Supercomnet Technologies and Cosmos Technology go up and down completely randomly.
Pair Corralation between Supercomnet Technologies and Cosmos Technology
Assuming the 90 days trading horizon Supercomnet Technologies Bhd is expected to generate 0.71 times more return on investment than Cosmos Technology. However, Supercomnet Technologies Bhd is 1.42 times less risky than Cosmos Technology. It trades about 0.0 of its potential returns per unit of risk. Cosmos Technology International is currently generating about -0.02 per unit of risk. If you would invest 140.00 in Supercomnet Technologies Bhd on November 5, 2024 and sell it today you would lose (11.00) from holding Supercomnet Technologies Bhd or give up 7.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 99.79% |
Values | Daily Returns |
Supercomnet Technologies Bhd vs. Cosmos Technology Internationa
Performance |
Timeline |
Supercomnet Technologies |
Cosmos Technology |
Supercomnet Technologies and Cosmos Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Supercomnet Technologies and Cosmos Technology
The main advantage of trading using opposite Supercomnet Technologies and Cosmos Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercomnet Technologies position performs unexpectedly, Cosmos Technology 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 Cosmos Technology will offset losses from the drop in Cosmos Technology's long position.Supercomnet Technologies vs. Petronas Chemicals Group | Supercomnet Technologies vs. CB Industrial Product | Supercomnet Technologies vs. Choo Bee Metal | Supercomnet Technologies vs. YTL Hospitality REIT |
Cosmos Technology vs. Public Bank Bhd | Cosmos Technology vs. Tex Cycle Technology | Cosmos Technology vs. Aeon Credit Service | Cosmos Technology vs. Greatech Technology Bhd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |