Correlation Between Cogobuy and Chiba Bank
Can any of the company-specific risk be diversified away by investing in both Cogobuy and Chiba Bank 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 Cogobuy and Chiba Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogobuy Group and Chiba Bank, you can compare the effects of market volatilities on Cogobuy and Chiba Bank 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 Cogobuy with a short position of Chiba Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogobuy and Chiba Bank.
Diversification Opportunities for Cogobuy and Chiba Bank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cogobuy and Chiba is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cogobuy Group and Chiba Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiba Bank and Cogobuy 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 Cogobuy Group are associated (or correlated) with Chiba Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiba Bank has no effect on the direction of Cogobuy i.e., Cogobuy and Chiba Bank go up and down completely randomly.
Pair Corralation between Cogobuy and Chiba Bank
Assuming the 90 days horizon Cogobuy Group is expected to under-perform the Chiba Bank. In addition to that, Cogobuy is 1.91 times more volatile than Chiba Bank. It trades about -0.06 of its total potential returns per unit of risk. Chiba Bank is currently generating about 0.27 per unit of volatility. If you would invest 660.00 in Chiba Bank on August 27, 2024 and sell it today you would earn a total of 75.00 from holding Chiba Bank or generate 11.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogobuy Group vs. Chiba Bank
Performance |
| Timeline |
| Cogobuy Group |
| Chiba Bank |
Cogobuy and Chiba Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogobuy and Chiba Bank
The main advantage of trading using opposite Cogobuy and Chiba Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogobuy position performs unexpectedly, Chiba Bank 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 Chiba Bank will offset losses from the drop in Chiba Bank's long position.| Cogobuy vs. Chiba Bank | Cogobuy vs. REINET INVESTMENTS SCA | Cogobuy vs. PennantPark Investment | Cogobuy vs. MTI WIRELESS EDGE |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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