Correlation Between ICD Co and Cosmax Nbt
Can any of the company-specific risk be diversified away by investing in both ICD Co and Cosmax Nbt 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 ICD Co and Cosmax Nbt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICD Co and Cosmax Nbt, you can compare the effects of market volatilities on ICD Co and Cosmax Nbt 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 ICD Co with a short position of Cosmax Nbt. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICD Co and Cosmax Nbt.
Diversification Opportunities for ICD Co and Cosmax Nbt
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICD and Cosmax is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding ICD Co and Cosmax Nbt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmax Nbt and ICD Co 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 ICD Co are associated (or correlated) with Cosmax Nbt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmax Nbt has no effect on the direction of ICD Co i.e., ICD Co and Cosmax Nbt go up and down completely randomly.
Pair Corralation between ICD Co and Cosmax Nbt
Assuming the 90 days trading horizon ICD Co is expected to generate 0.86 times more return on investment than Cosmax Nbt. However, ICD Co is 1.16 times less risky than Cosmax Nbt. It trades about 0.01 of its potential returns per unit of risk. Cosmax Nbt is currently generating about -0.07 per unit of risk. If you would invest 454,500 in ICD Co on September 13, 2024 and sell it today you would lose (2,500) from holding ICD Co or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICD Co vs. Cosmax Nbt
Performance |
| Timeline |
| ICD Co |
| Cosmax Nbt |
ICD Co and Cosmax Nbt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICD Co and Cosmax Nbt
The main advantage of trading using opposite ICD Co and Cosmax Nbt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICD Co position performs unexpectedly, Cosmax Nbt 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 Cosmax Nbt will offset losses from the drop in Cosmax Nbt's long position.| ICD Co vs. SFA Engineering | ICD Co vs. APS Holdings | ICD Co vs. Soulbrain Holdings Co | ICD Co vs. JUSUNG ENGINEERING Co |
| Cosmax Nbt vs. Sam Yang Foods | Cosmax Nbt vs. FoodNamoo | Cosmax Nbt vs. Kbi Metal Co | Cosmax Nbt vs. Kukil Metal Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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