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 CDR, 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
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MAVEN and COSTCO is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and COSTCO WHOLESALE CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSTCO WHOLESALE CDR 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 CDR 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 1.61 times more volatile than COSTCO WHOLESALE CDR. It trades about -0.14 of its total potential returns per unit of risk. COSTCO WHOLESALE CDR is currently generating about 0.1 per unit of volatility. If you would invest 2,734 in COSTCO WHOLESALE CDR on August 29, 2024 and sell it today you would earn a total of 266.00 from holding COSTCO WHOLESALE CDR or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. COSTCO WHOLESALE CDR
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| COSTCO WHOLESALE CDR |
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. Verizon Communications | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG |
| COSTCO WHOLESALE vs. Walmart | COSTCO WHOLESALE vs. Walmart | COSTCO WHOLESALE vs. Costco Wholesale | COSTCO WHOLESALE vs. Target |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |