Correlation Between Aurelius Technologies and Cosmos Technology
Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies 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 Aurelius Technologies and Cosmos Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelius Technologies Bhd and Cosmos Technology International, you can compare the effects of market volatilities on Aurelius Technologies 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 Aurelius Technologies with a short position of Cosmos Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and Cosmos Technology.
Diversification Opportunities for Aurelius Technologies and Cosmos Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurelius and Cosmos is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies 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 Aurelius Technologies 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 Aurelius Technologies 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 Aurelius Technologies i.e., Aurelius Technologies and Cosmos Technology go up and down completely randomly.
Pair Corralation between Aurelius Technologies and Cosmos Technology
Assuming the 90 days trading horizon Aurelius Technologies Bhd is expected to generate 0.81 times more return on investment than Cosmos Technology. However, Aurelius Technologies Bhd is 1.23 times less risky than Cosmos Technology. It trades about 0.03 of its potential returns per unit of risk. Cosmos Technology International is currently generating about -0.02 per unit of risk. If you would invest 263.00 in Aurelius Technologies Bhd on November 4, 2024 and sell it today you would earn a total of 52.00 from holding Aurelius Technologies Bhd or generate 19.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelius Technologies Bhd vs. Cosmos Technology Internationa
Performance |
| Timeline |
| Aurelius Technologies Bhd |
| Cosmos Technology |
Aurelius Technologies and Cosmos Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelius Technologies and Cosmos Technology
The main advantage of trading using opposite Aurelius Technologies and Cosmos Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies 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.| Aurelius Technologies vs. ViTrox Bhd | Aurelius Technologies vs. MI Technovation Bhd | Aurelius Technologies vs. Globetronics Tech Bhd | Aurelius Technologies vs. AirAsia X Bhd |
| Cosmos Technology vs. Farm Price Holdings | Cosmos Technology vs. Uchi Technologies Bhd | Cosmos Technology vs. ES Ceramics Technology | Cosmos Technology vs. Rubberex M |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |