Correlation Between Cosmos Technology and Public Packages
Can any of the company-specific risk be diversified away by investing in both Cosmos Technology and Public Packages 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 Public Packages 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 Public Packages Holdings, you can compare the effects of market volatilities on Cosmos Technology and Public Packages 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 Public Packages. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Technology and Public Packages.
Diversification Opportunities for Cosmos Technology and Public Packages
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cosmos and Public is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Technology Internationa and Public Packages Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Packages Holdings 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 Public Packages. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Packages Holdings has no effect on the direction of Cosmos Technology i.e., Cosmos Technology and Public Packages go up and down completely randomly.
Pair Corralation between Cosmos Technology and Public Packages
Assuming the 90 days trading horizon Cosmos Technology International is expected to under-perform the Public Packages. In addition to that, Cosmos Technology is 1.58 times more volatile than Public Packages Holdings. It trades about -0.15 of its total potential returns per unit of risk. Public Packages Holdings is currently generating about -0.12 per unit of volatility. If you would invest 83.00 in Public Packages Holdings on October 30, 2024 and sell it today you would lose (3.00) from holding Public Packages Holdings or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmos Technology Internationa vs. Public Packages Holdings
Performance |
| Timeline |
| Cosmos Technology |
| Public Packages Holdings |
Cosmos Technology and Public Packages Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Technology and Public Packages
The main advantage of trading using opposite Cosmos Technology and Public Packages positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Technology position performs unexpectedly, Public Packages 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 Public Packages will offset losses from the drop in Public Packages' long position.| Cosmos Technology vs. PMB Technology Bhd | Cosmos Technology vs. TAS Offshore Bhd | Cosmos Technology vs. Dnonce Tech Bhd | Cosmos Technology vs. Eonmetall Group Bhd |
| Public Packages vs. Carlsberg Brewery Malaysia | Public Packages vs. Binasat Communications Bhd | Public Packages vs. Uchi Technologies Bhd | Public Packages vs. K One Technology 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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