Correlation Between Resintech Bhd and Cosmos Technology
Can any of the company-specific risk be diversified away by investing in both Resintech Bhd 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 Resintech Bhd and Cosmos Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Resintech Bhd and Cosmos Technology International, you can compare the effects of market volatilities on Resintech Bhd 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 Resintech Bhd with a short position of Cosmos Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Resintech Bhd and Cosmos Technology.
Diversification Opportunities for Resintech Bhd and Cosmos Technology
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Resintech and Cosmos is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Resintech 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 Resintech Bhd 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 Resintech 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 Resintech Bhd i.e., Resintech Bhd and Cosmos Technology go up and down completely randomly.
Pair Corralation between Resintech Bhd and Cosmos Technology
Assuming the 90 days trading horizon Resintech Bhd is expected to under-perform the Cosmos Technology. In addition to that, Resintech Bhd is 1.25 times more volatile than Cosmos Technology International. It trades about -0.16 of its total potential returns per unit of risk. Cosmos Technology International is currently generating about 0.1 per unit of volatility. If you would invest 36.00 in Cosmos Technology International on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Cosmos Technology International or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Resintech Bhd vs. Cosmos Technology Internationa
Performance |
| Timeline |
| Resintech Bhd |
| Cosmos Technology |
Resintech Bhd and Cosmos Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Resintech Bhd and Cosmos Technology
The main advantage of trading using opposite Resintech Bhd and Cosmos Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resintech Bhd 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.| Resintech Bhd vs. Public Bank Bhd | Resintech Bhd vs. Awanbiru Technology Bhd | Resintech Bhd vs. Malayan Banking Bhd | Resintech Bhd vs. Shangri La Hotels |
| Cosmos Technology vs. Mercury Industries Bhd | Cosmos Technology vs. Uchi Technologies Bhd | Cosmos Technology vs. Senheng New Retail | Cosmos Technology vs. Choo Bee Metal |
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..
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