Correlation Between COSMOSTEEL HLDGS and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS and MEDICAL FACILITIES 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 HLDGS and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on COSMOSTEEL HLDGS and MEDICAL FACILITIES 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 HLDGS with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and MEDICAL FACILITIES.
Diversification Opportunities for COSMOSTEEL HLDGS and MEDICAL FACILITIES
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between COSMOSTEEL and MEDICAL is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and COSMOSTEEL HLDGS 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 HLDGS are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and MEDICAL FACILITIES
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 1.49 times less return on investment than MEDICAL FACILITIES. In addition to that, COSMOSTEEL HLDGS is 1.08 times more volatile than MEDICAL FACILITIES NEW. It trades about 0.04 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.06 per unit of volatility. If you would invest 570.00 in MEDICAL FACILITIES NEW on January 20, 2025 and sell it today you would earn a total of 385.00 from holding MEDICAL FACILITIES NEW or generate 67.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| MEDICAL FACILITIES NEW |
COSMOSTEEL HLDGS and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and MEDICAL FACILITIES
The main advantage of trading using opposite COSMOSTEEL HLDGS and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| COSMOSTEEL HLDGS vs. Yuexiu Transport Infrastructure | COSMOSTEEL HLDGS vs. Air Lease | COSMOSTEEL HLDGS vs. Jacquet Metal Service | COSMOSTEEL HLDGS vs. Air Transport Services |
| MEDICAL FACILITIES vs. HCA Healthcare | MEDICAL FACILITIES vs. Fresenius SE Co | MEDICAL FACILITIES vs. Fresenius Medical Care | MEDICAL FACILITIES vs. Ramsay Health Care |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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