Correlation Between Cosmos Technology and YX Precious
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and YX Precious 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 YX Precious 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 YX Precious Metals, you can compare the effects of market volatilities on Cosmos Technology and YX Precious 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 YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and YX Precious.
Diversification Opportunities for Cosmos Technology and YX Precious
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cosmos and 0250 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and YX Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YX Precious Metals 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 YX Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YX Precious Metals has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and YX Precious go up and down completely randomly.
Pair Corralation between Cosmos Technology and YX Precious
Assuming the 90 days trading horizon Cosmos Technology International is expected to generate 1.28 times more return on investment than YX Precious. However, Cosmos Technology is 1.28 times more volatile than YX Precious Metals. It trades about -0.05 of its potential returns per unit of risk. YX Precious Metals is currently generating about -0.3 per unit of risk. If you would invest 38.00 in Cosmos Technology International on August 24, 2024 and sell it today you would lose (1.00) from holding Cosmos Technology International or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. YX Precious Metals
Performance |
| Timeline |
| Cosmos Technology |
| YX Precious Metals |
Cosmos Technology and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and YX Precious
The main advantage of trading using opposite Cosmos Technology and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, YX Precious 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 YX Precious will offset losses from the drop in YX Precious' 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 |
| YX Precious vs. Malayan Banking Bhd | YX Precious vs. Public Bank Bhd | YX Precious vs. Petronas Chemicals Group | YX Precious 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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