Correlation Between Corporate Travel and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both Corporate Travel 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 Corporate Travel and COSMOSTEEL HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and COSMOSTEEL HLDGS, you can compare the effects of market volatilities on Corporate Travel 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 Corporate Travel with a short position of COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and COSMOSTEEL HLDGS.
Diversification Opportunities for Corporate Travel and COSMOSTEEL HLDGS
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Corporate and COSMOSTEEL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS and Corporate Travel 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 Corporate Travel Management 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 Corporate Travel i.e., Corporate Travel and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between Corporate Travel and COSMOSTEEL HLDGS
Assuming the 90 days trading horizon Corporate Travel Management is expected to under-perform the COSMOSTEEL HLDGS. In addition to that, Corporate Travel is 1.2 times more volatile than COSMOSTEEL HLDGS. It trades about -0.2 of its total potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about -0.15 per unit of volatility. If you would invest 7.05 in COSMOSTEEL HLDGS on October 16, 2024 and sell it today you would lose (0.35) from holding COSMOSTEEL HLDGS or give up 4.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Travel Management vs. COSMOSTEEL HLDGS
Performance |
| Timeline |
| Corporate Travel Man |
| COSMOSTEEL HLDGS |
Corporate Travel and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Travel and COSMOSTEEL HLDGS
The main advantage of trading using opposite Corporate Travel and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel 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.| Corporate Travel vs. Aluminum of | Corporate Travel vs. H2O Retailing | Corporate Travel vs. Jacquet Metal Service | Corporate Travel vs. Nippon Light Metal |
| COSMOSTEEL HLDGS vs. Corporate Travel Management | COSMOSTEEL HLDGS vs. ZhongAn Online P | COSMOSTEEL HLDGS vs. PACIFIC ONLINE | COSMOSTEEL HLDGS vs. LANDSEA GREEN MANAGEMENT |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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