Correlation Between Cosmax and E Investment
Can any of the company-specific risk be diversified away by investing in both Cosmax and E Investment 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 Cosmax and E Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmax Inc and E Investment Development, you can compare the effects of market volatilities on Cosmax and E Investment 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 Cosmax with a short position of E Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmax and E Investment.
Diversification Opportunities for Cosmax and E Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cosmax and 093230 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cosmax Inc and E Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Investment Development and Cosmax 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 Cosmax Inc are associated (or correlated) with E Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Investment Development has no effect on the direction of Cosmax i.e., Cosmax and E Investment go up and down completely randomly.
Pair Corralation between Cosmax and E Investment
Assuming the 90 days trading horizon Cosmax Inc is expected to generate 0.79 times more return on investment than E Investment. However, Cosmax Inc is 1.27 times less risky than E Investment. It trades about 0.06 of its potential returns per unit of risk. E Investment Development is currently generating about 0.04 per unit of risk. If you would invest 6,701,785 in Cosmax Inc on September 2, 2024 and sell it today you would earn a total of 6,598,215 from holding Cosmax Inc or generate 98.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Cosmax Inc vs. E Investment Development
Performance |
| Timeline |
| Cosmax Inc |
| E Investment Development |
Cosmax and E Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmax and E Investment
The main advantage of trading using opposite Cosmax and E Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmax position performs unexpectedly, E Investment 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 E Investment will offset losses from the drop in E Investment's long position.| Cosmax vs. E Investment Development | Cosmax vs. Cuckoo Electronics Co | Cosmax vs. Daeduck Electronics Co | Cosmax vs. Daol Investment Securities |
| E Investment vs. Hana Financial | E Investment vs. InfoBank | E Investment vs. Dgb Financial | E Investment vs. Korean Reinsurance 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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