Correlation Between Cosmos Technology and Star Media
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Star Media 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 Star Media 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 Star Media Group, you can compare the effects of market volatilities on Cosmos Technology and Star Media 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 Star Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Star Media.
Diversification Opportunities for Cosmos Technology and Star Media
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cosmos and Star is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Star Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Media Group 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 Star Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Media Group has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Star Media go up and down completely randomly.
Pair Corralation between Cosmos Technology and Star Media
Assuming the 90 days trading horizon Cosmos Technology International is expected to under-perform the Star Media. In addition to that, Cosmos Technology is 1.68 times more volatile than Star Media Group. It trades about -0.17 of its total potential returns per unit of risk. Star Media Group is currently generating about -0.09 per unit of volatility. If you would invest 41.00 in Star Media Group on November 5, 2024 and sell it today you would lose (1.00) from holding Star Media Group or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Star Media Group
Performance |
| Timeline |
| Cosmos Technology |
| Star Media Group |
Cosmos Technology and Star Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Star Media
The main advantage of trading using opposite Cosmos Technology and Star Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Star Media 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 Star Media will offset losses from the drop in Star Media's long position.| Cosmos Technology vs. Farm Price Holdings | Cosmos Technology vs. Uchi Technologies Bhd | Cosmos Technology vs. ES Ceramics Technology | Cosmos Technology vs. Rubberex M |
| Star Media vs. Kluang Rubber | Star Media vs. Kawan Food Bhd | Star Media vs. Hong Leong Bank | Star Media vs. Eversafe Rubber 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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