Correlation Between FoodNamoo and Cosmax Nbt
Can any of the company-specific risk be diversified away by investing in both FoodNamoo and Cosmax Nbt 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 FoodNamoo and Cosmax Nbt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FoodNamoo and Cosmax Nbt, you can compare the effects of market volatilities on FoodNamoo and Cosmax Nbt 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 FoodNamoo with a short position of Cosmax Nbt. Check out your portfolio center. Please also check ongoing floating volatility patterns of FoodNamoo and Cosmax Nbt.
Diversification Opportunities for FoodNamoo and Cosmax Nbt
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between FoodNamoo and Cosmax is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FoodNamoo and Cosmax Nbt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmax Nbt and FoodNamoo 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 FoodNamoo are associated (or correlated) with Cosmax Nbt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmax Nbt has no effect on the direction of FoodNamoo i.e., FoodNamoo and Cosmax Nbt go up and down completely randomly.
Pair Corralation between FoodNamoo and Cosmax Nbt
Assuming the 90 days trading horizon FoodNamoo is expected to under-perform the Cosmax Nbt. But the stock apears to be less risky and, when comparing its historical volatility, FoodNamoo is 1.19 times less risky than Cosmax Nbt. The stock trades about -0.04 of its potential returns per unit of risk. The Cosmax Nbt is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 298,000 in Cosmax Nbt on December 4, 2024 and sell it today you would earn a total of 21,000 from holding Cosmax Nbt or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FoodNamoo vs. Cosmax Nbt
Performance |
| Timeline |
| FoodNamoo |
| Cosmax Nbt |
FoodNamoo and Cosmax Nbt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FoodNamoo and Cosmax Nbt
The main advantage of trading using opposite FoodNamoo and Cosmax Nbt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FoodNamoo position performs unexpectedly, Cosmax Nbt 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 Nbt will offset losses from the drop in Cosmax Nbt's long position.| FoodNamoo vs. LG Household Healthcare | FoodNamoo vs. Samyoung Electronics Co | FoodNamoo vs. Industrial Bank | FoodNamoo vs. Kbi Metal Co |
| Cosmax Nbt vs. Sangsin Energy Display | Cosmax Nbt vs. Eugene Investment Securities | Cosmax Nbt vs. Nh Investment And | Cosmax Nbt vs. DB Financial Investment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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