Correlation Between SS TECH and Cosmecca Korea
Can any of the company-specific risk be diversified away by investing in both SS TECH and Cosmecca Korea 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 SS TECH and Cosmecca Korea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS TECH and Cosmecca Korea Co, you can compare the effects of market volatilities on SS TECH and Cosmecca Korea 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 SS TECH with a short position of Cosmecca Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS TECH and Cosmecca Korea.
Diversification Opportunities for SS TECH and Cosmecca Korea
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 101490 and Cosmecca is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SS TECH and Cosmecca Korea Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmecca Korea and SS TECH 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 SS TECH are associated (or correlated) with Cosmecca Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmecca Korea has no effect on the direction of SS TECH i.e., SS TECH and Cosmecca Korea go up and down completely randomly.
Pair Corralation between SS TECH and Cosmecca Korea
Assuming the 90 days trading horizon SS TECH is expected to generate 7.5 times less return on investment than Cosmecca Korea. But when comparing it to its historical volatility, SS TECH is 1.21 times less risky than Cosmecca Korea. It trades about 0.02 of its potential returns per unit of risk. Cosmecca Korea Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 933,000 in Cosmecca Korea Co on September 13, 2024 and sell it today you would earn a total of 4,357,000 from holding Cosmecca Korea Co or generate 466.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS TECH vs. Cosmecca Korea Co
Performance |
| Timeline |
| SS TECH |
| Cosmecca Korea |
SS TECH and Cosmecca Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS TECH and Cosmecca Korea
The main advantage of trading using opposite SS TECH and Cosmecca Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS TECH position performs unexpectedly, Cosmecca Korea 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 Cosmecca Korea will offset losses from the drop in Cosmecca Korea's long position.| SS TECH vs. Cube Entertainment | SS TECH vs. Dreamus Company | SS TECH vs. LG Energy Solution | SS TECH vs. Dongwon System |
| Cosmecca Korea vs. ChipsMedia | Cosmecca Korea vs. YG Entertainment | Cosmecca Korea vs. SKONEC Entertainment Co | Cosmecca Korea vs. Samsung Life Insurance |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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