Correlation Between CosmoSteel Holdings and Veolia Environnement
Can any of the company-specific risk be diversified away by investing in both CosmoSteel Holdings and Veolia Environnement 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 CosmoSteel Holdings and Veolia Environnement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CosmoSteel Holdings Limited and Veolia Environnement SA, you can compare the effects of market volatilities on CosmoSteel Holdings and Veolia Environnement 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 CosmoSteel Holdings with a short position of Veolia Environnement. Check out your portfolio center. Please also check ongoing floating volatility patterns of CosmoSteel Holdings and Veolia Environnement.
Diversification Opportunities for CosmoSteel Holdings and Veolia Environnement
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CosmoSteel and Veolia is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding CosmoSteel Holdings Limited and Veolia Environnement SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veolia Environnement and CosmoSteel Holdings 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 CosmoSteel Holdings Limited are associated (or correlated) with Veolia Environnement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veolia Environnement has no effect on the direction of CosmoSteel Holdings i.e., CosmoSteel Holdings and Veolia Environnement go up and down completely randomly.
Pair Corralation between CosmoSteel Holdings and Veolia Environnement
Assuming the 90 days horizon CosmoSteel Holdings Limited is expected to generate 1.52 times more return on investment than Veolia Environnement. However, CosmoSteel Holdings is 1.52 times more volatile than Veolia Environnement SA. It trades about 0.24 of its potential returns per unit of risk. Veolia Environnement SA is currently generating about -0.32 per unit of risk. If you would invest 5.80 in CosmoSteel Holdings Limited on September 5, 2024 and sell it today you would earn a total of 0.65 from holding CosmoSteel Holdings Limited or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CosmoSteel Holdings Limited vs. Veolia Environnement SA
Performance |
| Timeline |
| CosmoSteel Holdings |
| Veolia Environnement |
CosmoSteel Holdings and Veolia Environnement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CosmoSteel Holdings and Veolia Environnement
The main advantage of trading using opposite CosmoSteel Holdings and Veolia Environnement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CosmoSteel Holdings position performs unexpectedly, Veolia Environnement 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 Veolia Environnement will offset losses from the drop in Veolia Environnement's long position.| CosmoSteel Holdings vs. Superior Plus Corp | CosmoSteel Holdings vs. NMI Holdings | CosmoSteel Holdings vs. Origin Agritech | CosmoSteel Holdings vs. SIVERS SEMICONDUCTORS AB |
| Veolia Environnement vs. JAPAN AIRLINES | Veolia Environnement vs. BlueScope Steel Limited | Veolia Environnement vs. CosmoSteel Holdings Limited | Veolia Environnement vs. Cars Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |