Correlation Between Cosmos Technology and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Aurelius Technologies 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 Aurelius Technologies 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 Aurelius Technologies Bhd, you can compare the effects of market volatilities on Cosmos Technology and Aurelius Technologies 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 Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Aurelius Technologies.
Diversification Opportunities for Cosmos Technology and Aurelius Technologies
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cosmos and Aurelius is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies 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 Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Cosmos Technology and Aurelius Technologies
Assuming the 90 days trading horizon Cosmos Technology International is expected to under-perform the Aurelius Technologies. In addition to that, Cosmos Technology is 1.47 times more volatile than Aurelius Technologies Bhd. It trades about -0.04 of its total potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about -0.04 per unit of volatility. If you would invest 338.00 in Aurelius Technologies Bhd on October 25, 2024 and sell it today you would lose (5.00) from holding Aurelius Technologies Bhd or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Aurelius Technologies Bhd
Performance |
| Timeline |
| Cosmos Technology |
| Aurelius Technologies Bhd |
Cosmos Technology and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Aurelius Technologies
The main advantage of trading using opposite Cosmos Technology and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Aurelius Technologies 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' long position.| Cosmos Technology vs. Datasonic Group Bhd | Cosmos Technology vs. Kossan Rubber Industries | Cosmos Technology vs. Computer Forms Bhd | Cosmos Technology vs. Melewar Industrial Group |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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