Correlation Between Cosmos Technology and Brite Tech
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Brite Tech 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 Cosmos Technology and Brite Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos Technology International and Brite Tech Bhd, you can compare the effects of market volatilities on Cosmos Technology and Brite Tech 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 Cosmos Technology with a short position of Brite Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Brite Tech.
Diversification Opportunities for Cosmos Technology and Brite Tech
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cosmos and Brite is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Brite Tech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brite Tech Bhd and Cosmos Technology 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 Cosmos Technology International are associated (or correlated) with Brite Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brite Tech Bhd has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Brite Tech go up and down completely randomly.
Pair Corralation between Cosmos Technology and Brite Tech
Assuming the 90 days trading horizon Cosmos Technology International is expected to under-perform the Brite Tech. In addition to that, Cosmos Technology is 1.18 times more volatile than Brite Tech Bhd. It trades about -0.1 of its total potential returns per unit of risk. Brite Tech Bhd is currently generating about 0.09 per unit of volatility. If you would invest 31.00 in Brite Tech Bhd on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Brite Tech Bhd or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Brite Tech Bhd
Performance |
| Timeline |
| Cosmos Technology |
| Brite Tech Bhd |
Cosmos Technology and Brite Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Brite Tech
The main advantage of trading using opposite Cosmos Technology and Brite Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Brite Tech 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 Brite Tech will offset losses from the drop in Brite Tech's long position.| Cosmos Technology vs. Malayan Banking Bhd | Cosmos Technology vs. Public Bank Bhd | Cosmos Technology vs. Petronas Chemicals Group | Cosmos Technology vs. IHH Healthcare Bhd |
| Brite Tech vs. Minetech Resources Bhd | Brite Tech vs. Sunzen Biotech Bhd | Brite Tech vs. Hengyuan Refining | Brite Tech vs. Impiana Hotels 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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