Correlation Between MAVEN WIRELESS and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and Costco Wholesale 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 Costco Wholesale 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 Costco Wholesale, you can compare the effects of market volatilities on MAVEN WIRELESS and Costco Wholesale 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 Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and Costco Wholesale.
Diversification Opportunities for MAVEN WIRELESS and Costco Wholesale
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAVEN and Costco is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and Costco Wholesale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale 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 Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and Costco Wholesale go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and Costco Wholesale
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the Costco Wholesale. In addition to that, MAVEN WIRELESS is 2.12 times more volatile than Costco Wholesale. It trades about -0.03 of its total potential returns per unit of risk. Costco Wholesale is currently generating about 0.07 per unit of volatility. If you would invest 66,928 in Costco Wholesale on December 11, 2024 and sell it today you would earn a total of 20,022 from holding Costco Wholesale or generate 29.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. Costco Wholesale
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| Costco Wholesale |
MAVEN WIRELESS and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and Costco Wholesale
The main advantage of trading using opposite MAVEN WIRELESS and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.| MAVEN WIRELESS vs. Take Two Interactive Software | ||
| MAVEN WIRELESS vs. Kingdee International Software | ||
| MAVEN WIRELESS vs. RESMINING UNSPADR10 | ||
| MAVEN WIRELESS vs. GOLDQUEST MINING |
| Costco Wholesale vs. APPLIED MATERIALS | ||
| Costco Wholesale vs. Applied Materials | ||
| Costco Wholesale vs. Plastic Omnium | ||
| Costco Wholesale vs. IBU tec advanced materials |
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..
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |