Correlation Between Icon Offshore and Cosmos Technology
Can any of the company-specific risk be diversified away by investing in both Icon Offshore and Cosmos Technology 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 Icon Offshore and Cosmos Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Offshore Bhd and Cosmos Technology International, you can compare the effects of market volatilities on Icon Offshore and Cosmos Technology 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 Icon Offshore with a short position of Cosmos Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Offshore and Cosmos Technology.
Diversification Opportunities for Icon Offshore and Cosmos Technology
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icon and Cosmos is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Icon Offshore Bhd and Cosmos Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Technology and Icon Offshore 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 Icon Offshore Bhd are associated (or correlated) with Cosmos Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Technology has no effect on the direction of Icon Offshore i.e., Icon Offshore and Cosmos Technology go up and down completely randomly.
Pair Corralation between Icon Offshore and Cosmos Technology
Assuming the 90 days trading horizon Icon Offshore Bhd is expected to under-perform the Cosmos Technology. But the stock apears to be less risky and, when comparing its historical volatility, Icon Offshore Bhd is 1.59 times less risky than Cosmos Technology. The stock trades about -0.16 of its potential returns per unit of risk. The Cosmos Technology International is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Cosmos Technology International on October 26, 2024 and sell it today you would earn a total of 4.00 from holding Cosmos Technology International or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Offshore Bhd vs. Cosmos Technology Internationa
Performance |
| Timeline |
| Icon Offshore Bhd |
| Cosmos Technology |
Icon Offshore and Cosmos Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Offshore and Cosmos Technology
The main advantage of trading using opposite Icon Offshore and Cosmos Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Offshore position performs unexpectedly, Cosmos Technology 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 Cosmos Technology will offset losses from the drop in Cosmos Technology's long position.| Icon Offshore vs. Dnonce Tech Bhd | Icon Offshore vs. Cosmos Technology International | Icon Offshore vs. Uchi Technologies Bhd | Icon Offshore vs. Aurelius Technologies Bhd |
| Cosmos Technology vs. TAS Offshore Bhd | Cosmos Technology vs. Icon Offshore Bhd | Cosmos Technology vs. K One Technology Bhd | Cosmos Technology vs. Supercomnet Technologies Bhd |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |