Correlation Between MAVEN WIRELESS and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS 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 MAVEN WIRELESS and COSMOSTEEL HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and COSMOSTEEL HLDGS, you can compare the effects of market volatilities on MAVEN WIRELESS 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 MAVEN WIRELESS with a short position of COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and COSMOSTEEL HLDGS.
Diversification Opportunities for MAVEN WIRELESS and COSMOSTEEL HLDGS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAVEN and COSMOSTEEL is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS i.e., MAVEN WIRELESS and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and COSMOSTEEL HLDGS
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to generate 1.59 times more return on investment than COSMOSTEEL HLDGS. However, MAVEN WIRELESS is 1.59 times more volatile than COSMOSTEEL HLDGS. It trades about 0.04 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about -0.09 per unit of risk. If you would invest 82.00 in MAVEN WIRELESS SWEDEN on October 17, 2024 and sell it today you would earn a total of 1.00 from holding MAVEN WIRELESS SWEDEN or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. COSMOSTEEL HLDGS
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| COSMOSTEEL HLDGS |
MAVEN WIRELESS and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and COSMOSTEEL HLDGS
The main advantage of trading using opposite MAVEN WIRELESS and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS 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.| MAVEN WIRELESS vs. INTERCONT HOTELS | MAVEN WIRELESS vs. Regal Hotels International | MAVEN WIRELESS vs. Scandinavian Tobacco Group | MAVEN WIRELESS vs. Wyndham Hotels Resorts |
| COSMOSTEEL HLDGS vs. Luckin Coffee | COSMOSTEEL HLDGS vs. CENTURIA OFFICE REIT | COSMOSTEEL HLDGS vs. Charter Communications | COSMOSTEEL HLDGS vs. MAVEN WIRELESS SWEDEN |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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