Correlation Between Cosmos Technology and Kobay Tech
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Kobay Tech 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 Kobay Tech 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 Kobay Tech Bhd, you can compare the effects of market volatilities on Cosmos Technology and Kobay Tech 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 Kobay Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Kobay Tech.
Diversification Opportunities for Cosmos Technology and Kobay Tech
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cosmos and Kobay is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Kobay Tech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kobay Tech 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 Kobay Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kobay Tech Bhd has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Kobay Tech go up and down completely randomly.
Pair Corralation between Cosmos Technology and Kobay Tech
Assuming the 90 days trading horizon Cosmos Technology International is expected to generate 0.62 times more return on investment than Kobay Tech. However, Cosmos Technology International is 1.6 times less risky than Kobay Tech. It trades about 0.05 of its potential returns per unit of risk. Kobay Tech Bhd is currently generating about -0.04 per unit of risk. If you would invest 35.00 in Cosmos Technology International on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Cosmos Technology International or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Kobay Tech Bhd
Performance |
| Timeline |
| Cosmos Technology |
| Kobay Tech Bhd |
Cosmos Technology and Kobay Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Kobay Tech
The main advantage of trading using opposite Cosmos Technology and Kobay Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Kobay Tech 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 Kobay Tech will offset losses from the drop in Kobay Tech's long position.| Cosmos Technology vs. ES Ceramics Technology | Cosmos Technology vs. TAS Offshore Bhd | Cosmos Technology vs. Awanbiru Technology Bhd | Cosmos Technology vs. Greatech Technology Bhd |
| Kobay Tech vs. Kluang Rubber | Kobay Tech vs. Binasat Communications Bhd | Kobay Tech vs. Computer Forms Bhd | Kobay Tech vs. Public Bank 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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