Correlation Between CyberAgent and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both CyberAgent 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 CyberAgent and Costco Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberAgent and Costco Wholesale Corp, you can compare the effects of market volatilities on CyberAgent 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 CyberAgent with a short position of Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberAgent and Costco Wholesale.
Diversification Opportunities for CyberAgent and Costco Wholesale
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between CyberAgent and Costco is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding CyberAgent and Costco Wholesale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale Corp and CyberAgent 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 CyberAgent 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 Corp has no effect on the direction of CyberAgent i.e., CyberAgent and Costco Wholesale go up and down completely randomly.
Pair Corralation between CyberAgent and Costco Wholesale
Assuming the 90 days horizon CyberAgent is expected to generate 1.87 times less return on investment than Costco Wholesale. In addition to that, CyberAgent is 1.29 times more volatile than Costco Wholesale Corp. It trades about 0.17 of its total potential returns per unit of risk. Costco Wholesale Corp is currently generating about 0.42 per unit of volatility. If you would invest 81,080 in Costco Wholesale Corp on September 4, 2024 and sell it today you would earn a total of 11,140 from holding Costco Wholesale Corp or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CyberAgent vs. Costco Wholesale Corp
Performance |
| Timeline |
| CyberAgent |
| Costco Wholesale Corp |
CyberAgent and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberAgent and Costco Wholesale
The main advantage of trading using opposite CyberAgent and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberAgent 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.| CyberAgent vs. Costco Wholesale Corp | CyberAgent vs. Live Nation Entertainment | CyberAgent vs. Caseys General Stores | CyberAgent vs. SCANSOURCE |
| Costco Wholesale vs. Calibre Mining Corp | Costco Wholesale vs. X FAB Silicon Foundries | Costco Wholesale vs. Wayside Technology Group | Costco Wholesale vs. AECOM TECHNOLOGY |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |