Correlation Between Cosmo Metals and Latitude Financial
Can any of the company-specific risk be diversified away by investing in both Cosmo Metals and Latitude Financial 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 Cosmo Metals and Latitude Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmo Metals and Latitude Financial Services, you can compare the effects of market volatilities on Cosmo Metals and Latitude Financial 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 Cosmo Metals with a short position of Latitude Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmo Metals and Latitude Financial.
Diversification Opportunities for Cosmo Metals and Latitude Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cosmo and Latitude is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cosmo Metals and Latitude Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Latitude Financial and Cosmo Metals 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 Cosmo Metals are associated (or correlated) with Latitude Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Latitude Financial has no effect on the direction of Cosmo Metals i.e., Cosmo Metals and Latitude Financial go up and down completely randomly.
Pair Corralation between Cosmo Metals and Latitude Financial
Assuming the 90 days trading horizon Cosmo Metals is expected to under-perform the Latitude Financial. In addition to that, Cosmo Metals is 11.49 times more volatile than Latitude Financial Services. It trades about -0.39 of its total potential returns per unit of risk. Latitude Financial Services is currently generating about 0.0 per unit of volatility. If you would invest 115.00 in Latitude Financial Services on November 7, 2024 and sell it today you would earn a total of 0.00 from holding Latitude Financial Services or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cosmo Metals vs. Latitude Financial Services
Performance |
| Timeline |
| Cosmo Metals |
| Latitude Financial |
Cosmo Metals and Latitude Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmo Metals and Latitude Financial
The main advantage of trading using opposite Cosmo Metals and Latitude Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmo Metals position performs unexpectedly, Latitude Financial 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 Latitude Financial will offset losses from the drop in Latitude Financial's long position.| Cosmo Metals vs. Northern Star Resources | Cosmo Metals vs. Evolution Mining | Cosmo Metals vs. Bluescope Steel | Cosmo Metals vs. De Grey Mining |
| Latitude Financial vs. Spirit Telecom | Latitude Financial vs. Retail Food Group | Latitude Financial vs. Dicker Data | Latitude Financial vs. Beam Communications Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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