Correlation Between Cosmos Technology and Computer Forms
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Computer Forms 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 Computer Forms 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 Computer Forms Bhd, you can compare the effects of market volatilities on Cosmos Technology and Computer Forms 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 Computer Forms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Computer Forms.
Diversification Opportunities for Cosmos Technology and Computer Forms
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cosmos and Computer is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Computer Forms Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Forms 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 Computer Forms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Forms Bhd has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Computer Forms go up and down completely randomly.
Pair Corralation between Cosmos Technology and Computer Forms
Assuming the 90 days trading horizon Cosmos Technology International is expected to generate 0.41 times more return on investment than Computer Forms. However, Cosmos Technology International is 2.44 times less risky than Computer Forms. It trades about -0.15 of its potential returns per unit of risk. Computer Forms Bhd is currently generating about -0.14 per unit of risk. If you would invest 42.00 in Cosmos Technology International on November 3, 2024 and sell it today you would lose (3.00) from holding Cosmos Technology International or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Computer Forms Bhd
Performance |
| Timeline |
| Cosmos Technology |
| Computer Forms Bhd |
Cosmos Technology and Computer Forms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Computer Forms
The main advantage of trading using opposite Cosmos Technology and Computer Forms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Computer Forms 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 Computer Forms will offset losses from the drop in Computer Forms' 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 |
| Computer Forms vs. Southern Steel Bhd | Computer Forms vs. Choo Bee Metal | Computer Forms vs. CSC Steel Holdings | Computer Forms vs. Petronas Chemicals Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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