Correlation Between Cosmos Technology and Magni Tech
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Magni 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 Magni 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 Magni Tech Industries, you can compare the effects of market volatilities on Cosmos Technology and Magni 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 Magni Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Magni Tech.
Diversification Opportunities for Cosmos Technology and Magni Tech
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cosmos and Magni is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Magni Tech Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magni Tech Industries 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 Magni Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magni Tech Industries has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Magni Tech go up and down completely randomly.
Pair Corralation between Cosmos Technology and Magni Tech
Assuming the 90 days trading horizon Cosmos Technology International is expected to under-perform the Magni Tech. In addition to that, Cosmos Technology is 1.75 times more volatile than Magni Tech Industries. It trades about -0.02 of its total potential returns per unit of risk. Magni Tech Industries is currently generating about 0.06 per unit of volatility. If you would invest 165.00 in Magni Tech Industries on November 4, 2024 and sell it today you would earn a total of 76.00 from holding Magni Tech Industries or generate 46.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Magni Tech Industries
Performance |
| Timeline |
| Cosmos Technology |
| Magni Tech Industries |
Cosmos Technology and Magni Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Magni Tech
The main advantage of trading using opposite Cosmos Technology and Magni Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Magni 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 Magni Tech will offset losses from the drop in Magni Tech'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 |
| Magni Tech vs. CPE Technology Berhad | Magni Tech vs. Ho Hup Construction | Magni Tech vs. Sports Toto Berhad | Magni Tech vs. Homeritz 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |