Correlation Between Cosmos Technology and MQ Technology
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and MQ 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 Cosmos Technology and MQ Technology 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 MQ Technology Bhd, you can compare the effects of market volatilities on Cosmos Technology and MQ 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 Cosmos Technology with a short position of MQ Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and MQ Technology.
Diversification Opportunities for Cosmos Technology and MQ Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cosmos and 0070 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and MQ Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQ Technology 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 MQ Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQ Technology Bhd has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and MQ Technology go up and down completely randomly.
Pair Corralation between Cosmos Technology and MQ Technology
Assuming the 90 days trading horizon Cosmos Technology International is expected to under-perform the MQ Technology. But the stock apears to be less risky and, when comparing its historical volatility, Cosmos Technology International is 3.0 times less risky than MQ Technology. The stock trades about -0.15 of its potential returns per unit of risk. The MQ Technology Bhd is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9.50 in MQ Technology Bhd on November 3, 2024 and sell it today you would earn a total of 1.50 from holding MQ Technology Bhd or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. MQ Technology Bhd
Performance |
| Timeline |
| Cosmos Technology |
| MQ Technology Bhd |
Cosmos Technology and MQ Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and MQ Technology
The main advantage of trading using opposite Cosmos Technology and MQ Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, MQ 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 MQ Technology will offset losses from the drop in MQ Technology's long position.| Cosmos Technology vs. Malayan Banking Bhd | Cosmos Technology vs. Public Bank Bhd | Cosmos Technology vs. Petronas Chemicals Group | Cosmos Technology vs. Tenaga Nasional Bhd |
| MQ Technology vs. Malayan Banking Bhd | MQ Technology vs. Public Bank Bhd | MQ Technology vs. Petronas Chemicals Group | MQ Technology vs. Tenaga Nasional 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |