Correlation Between Cosmos Technology and Al Aqar
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Al Aqar 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 Al Aqar 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 Al Aqar Healthcare, you can compare the effects of market volatilities on Cosmos Technology and Al Aqar 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 Al Aqar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Al Aqar.
Diversification Opportunities for Cosmos Technology and Al Aqar
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cosmos and 5116 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Al Aqar Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Aqar Healthcare 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 Al Aqar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Aqar Healthcare has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Al Aqar go up and down completely randomly.
Pair Corralation between Cosmos Technology and Al Aqar
Assuming the 90 days trading horizon Cosmos Technology International is expected to under-perform the Al Aqar. In addition to that, Cosmos Technology is 2.19 times more volatile than Al Aqar Healthcare. It trades about -0.1 of its total potential returns per unit of risk. Al Aqar Healthcare is currently generating about -0.06 per unit of volatility. If you would invest 142.00 in Al Aqar Healthcare on August 30, 2024 and sell it today you would lose (2.00) from holding Al Aqar Healthcare or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Al Aqar Healthcare
Performance |
| Timeline |
| Cosmos Technology |
| Al Aqar Healthcare |
Cosmos Technology and Al Aqar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Al Aqar
The main advantage of trading using opposite Cosmos Technology and Al Aqar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Al Aqar 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 Al Aqar will offset losses from the drop in Al Aqar'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 |
| Al Aqar vs. Petronas Chemicals Group | Al Aqar vs. TAS Offshore Bhd | Al Aqar vs. Dnonce Tech Bhd | Al Aqar vs. CPE Technology Berhad |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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