Correlation Between Enter Air and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both Enter Air and COSMOSTEEL HLDGS 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 Enter Air and COSMOSTEEL HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enter Air SA and COSMOSTEEL HLDGS, you can compare the effects of market volatilities on Enter Air and COSMOSTEEL HLDGS 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 Enter Air with a short position of COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and COSMOSTEEL HLDGS.
Diversification Opportunities for Enter Air and COSMOSTEEL HLDGS
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enter and COSMOSTEEL is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS and Enter Air 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 Enter Air SA are associated (or correlated) with COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of Enter Air i.e., Enter Air and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between Enter Air and COSMOSTEEL HLDGS
Assuming the 90 days trading horizon Enter Air SA is expected to generate 4.12 times more return on investment than COSMOSTEEL HLDGS. However, Enter Air is 4.12 times more volatile than COSMOSTEEL HLDGS. It trades about 0.03 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about 0.03 per unit of risk. If you would invest 1,206 in Enter Air SA on August 28, 2024 and sell it today you would lose (18.00) from holding Enter Air SA or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enter Air SA vs. COSMOSTEEL HLDGS
Performance |
| Timeline |
| Enter Air SA |
| COSMOSTEEL HLDGS |
Enter Air and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and COSMOSTEEL HLDGS
The main advantage of trading using opposite Enter Air and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS's long position.| Enter Air vs. Genco Shipping Trading | Enter Air vs. Siamgas And Petrochemicals | Enter Air vs. REINET INVESTMENTS SCA | Enter Air vs. Mitsui Chemicals |
| COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Microsoft | COSMOSTEEL HLDGS vs. Microsoft |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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