Correlation Between Cosmos Technology and Icon Offshore
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Icon Offshore 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 Icon Offshore 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 Icon Offshore Bhd, you can compare the effects of market volatilities on Cosmos Technology and Icon Offshore 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 Icon Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Icon Offshore.
Diversification Opportunities for Cosmos Technology and Icon Offshore
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cosmos and Icon is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Icon Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Offshore 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 Icon Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Offshore Bhd has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Icon Offshore go up and down completely randomly.
Pair Corralation between Cosmos Technology and Icon Offshore
Assuming the 90 days trading horizon Cosmos Technology International is expected to generate 1.59 times more return on investment than Icon Offshore. However, Cosmos Technology is 1.59 times more volatile than Icon Offshore Bhd. It trades about 0.13 of its potential returns per unit of risk. Icon Offshore Bhd is currently generating about -0.16 per unit of risk. If you would invest 37.00 in Cosmos Technology International on October 26, 2024 and sell it today you would earn a total of 4.00 from holding Cosmos Technology International or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Icon Offshore Bhd
Performance |
| Timeline |
| Cosmos Technology |
| Icon Offshore Bhd |
Cosmos Technology and Icon Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Icon Offshore
The main advantage of trading using opposite Cosmos Technology and Icon Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Icon Offshore 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 Icon Offshore will offset losses from the drop in Icon Offshore's long position.| Cosmos Technology vs. TAS Offshore Bhd | Cosmos Technology vs. Icon Offshore Bhd | Cosmos Technology vs. K One Technology Bhd | Cosmos Technology vs. Supercomnet Technologies Bhd |
| Icon Offshore vs. Dnonce Tech Bhd | Icon Offshore vs. Cosmos Technology International | Icon Offshore vs. Uchi Technologies Bhd | Icon Offshore vs. Aurelius Technologies 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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