Correlation Between Supercomnet Technologies and Cosmos Technology

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy99.79%
ValuesDaily Returns

Supercomnet Technologies Bhd  vs.  Cosmos Technology Internationa

 Performance 
       Timeline  
Supercomnet Technologies 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Supercomnet Technologies Bhd are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Supercomnet Technologies is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
Cosmos Technology 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos Technology International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Cosmos Technology may actually be approaching a critical reversion point that can send shares even higher in March 2025.

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.
The idea behind Supercomnet Technologies Bhd and Cosmos Technology International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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