Correlation Between Cosmax Nbt and Korea New
Can any of the company-specific risk be diversified away by investing in both Cosmax Nbt and Korea New 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 Nbt and Korea New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmax Nbt and Korea New Network, you can compare the effects of market volatilities on Cosmax Nbt and Korea New 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 Nbt with a short position of Korea New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmax Nbt and Korea New.
Diversification Opportunities for Cosmax Nbt and Korea New
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cosmax and Korea is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cosmax Nbt and Korea New Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea New Network and Cosmax Nbt 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 Nbt are associated (or correlated) with Korea New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea New Network has no effect on the direction of Cosmax Nbt i.e., Cosmax Nbt and Korea New go up and down completely randomly.
Pair Corralation between Cosmax Nbt and Korea New
Assuming the 90 days trading horizon Cosmax Nbt is expected to under-perform the Korea New. In addition to that, Cosmax Nbt is 1.49 times more volatile than Korea New Network. It trades about -0.05 of its total potential returns per unit of risk. Korea New Network is currently generating about 0.03 per unit of volatility. If you would invest 85,500 in Korea New Network on September 13, 2024 and sell it today you would earn a total of 5,100 from holding Korea New Network or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmax Nbt vs. Korea New Network
Performance |
| Timeline |
| Cosmax Nbt |
| Korea New Network |
Cosmax Nbt and Korea New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmax Nbt and Korea New
The main advantage of trading using opposite Cosmax Nbt and Korea New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmax Nbt position performs unexpectedly, Korea New 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 Korea New will offset losses from the drop in Korea New's long position.| Cosmax Nbt vs. Sam Yang Foods | Cosmax Nbt vs. FoodNamoo | Cosmax Nbt vs. Kbi Metal Co | Cosmax Nbt vs. Kukil Metal Co |
| Korea New vs. CJ Seafood Corp | Korea New vs. FoodNamoo | Korea New vs. FOODWELL Co | Korea New vs. Hankukpackage 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |