Correlation Between Cuckoo Electronics and Cosmax
Can any of the company-specific risk be diversified away by investing in both Cuckoo Electronics and Cosmax 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 Cuckoo Electronics and Cosmax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Electronics Co and Cosmax Inc, you can compare the effects of market volatilities on Cuckoo Electronics and Cosmax 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 Cuckoo Electronics with a short position of Cosmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Electronics and Cosmax.
Diversification Opportunities for Cuckoo Electronics and Cosmax
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cuckoo and Cosmax is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Electronics Co and Cosmax Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmax Inc and Cuckoo Electronics 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 Cuckoo Electronics Co are associated (or correlated) with Cosmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmax Inc has no effect on the direction of Cuckoo Electronics i.e., Cuckoo Electronics and Cosmax go up and down completely randomly.
Pair Corralation between Cuckoo Electronics and Cosmax
Assuming the 90 days trading horizon Cuckoo Electronics Co is expected to generate 0.51 times more return on investment than Cosmax. However, Cuckoo Electronics Co is 1.98 times less risky than Cosmax. It trades about 0.11 of its potential returns per unit of risk. Cosmax Inc is currently generating about 0.03 per unit of risk. If you would invest 1,527,771 in Cuckoo Electronics Co on September 3, 2024 and sell it today you would earn a total of 762,229 from holding Cuckoo Electronics Co or generate 49.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Electronics Co vs. Cosmax Inc
Performance |
| Timeline |
| Cuckoo Electronics |
| Cosmax Inc |
Cuckoo Electronics and Cosmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Electronics and Cosmax
The main advantage of trading using opposite Cuckoo Electronics and Cosmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Electronics position performs unexpectedly, Cosmax 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 will offset losses from the drop in Cosmax's long position.| Cuckoo Electronics vs. CG Hi Tech | Cuckoo Electronics vs. Digital Power Communications | Cuckoo Electronics vs. Lotte Data Communication | Cuckoo Electronics vs. Innowireless Co |
| Cosmax vs. Samsung Electronics Co | Cosmax vs. Samsung Electronics Co | Cosmax vs. LG Energy Solution | Cosmax vs. SK Hynix |
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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