Correlation Between PKSHA TECHNOLOGY and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and COSMOSTEEL HLDGS 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 PKSHA TECHNOLOGY and COSMOSTEEL HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and COSMOSTEEL HLDGS, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and COSMOSTEEL HLDGS 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 PKSHA TECHNOLOGY with a short position of COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and COSMOSTEEL HLDGS.
Diversification Opportunities for PKSHA TECHNOLOGY and COSMOSTEEL HLDGS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PKSHA and COSMOSTEEL is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and COSMOSTEEL HLDGS
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.14 times more return on investment than COSMOSTEEL HLDGS. However, PKSHA TECHNOLOGY is 1.14 times more volatile than COSMOSTEEL HLDGS. It trades about 0.06 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about 0.01 per unit of risk. If you would invest 1,170 in PKSHA TECHNOLOGY INC on September 12, 2024 and sell it today you would earn a total of 1,490 from holding PKSHA TECHNOLOGY INC or generate 127.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. COSMOSTEEL HLDGS
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| COSMOSTEEL HLDGS |
PKSHA TECHNOLOGY and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and COSMOSTEEL HLDGS
The main advantage of trading using opposite PKSHA TECHNOLOGY and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS's long position.| PKSHA TECHNOLOGY vs. Nippon Steel | PKSHA TECHNOLOGY vs. KRAKATAU STEEL B | PKSHA TECHNOLOGY vs. RELIANCE STEEL AL | PKSHA TECHNOLOGY vs. COSTCO WHOLESALE CDR |
| COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |