Correlation Between COSMOSTEEL HLDGS and ELL ENVIRONHLDGS
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS and ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and ELL ENVIRONHLDGS HD 0001, you can compare the effects of market volatilities on COSMOSTEEL HLDGS and ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and ELL ENVIRONHLDGS.
Diversification Opportunities for COSMOSTEEL HLDGS and ELL ENVIRONHLDGS
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COSMOSTEEL and ELL is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS and ELL ENVIRONHLDGS HD 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELL ENVIRONHLDGS has no effect on the direction of COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and ELL ENVIRONHLDGS go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and ELL ENVIRONHLDGS
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 0.73 times more return on investment than ELL ENVIRONHLDGS. However, COSMOSTEEL HLDGS is 1.38 times less risky than ELL ENVIRONHLDGS. It trades about 0.1 of its potential returns per unit of risk. ELL ENVIRONHLDGS HD 0001 is currently generating about -0.07 per unit of risk. If you would invest 5.95 in COSMOSTEEL HLDGS on October 26, 2024 and sell it today you would earn a total of 0.70 from holding COSMOSTEEL HLDGS or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. ELL ENVIRONHLDGS HD 0001
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| ELL ENVIRONHLDGS |
COSMOSTEEL HLDGS and ELL ENVIRONHLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and ELL ENVIRONHLDGS
The main advantage of trading using opposite COSMOSTEEL HLDGS and ELL ENVIRONHLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS position performs unexpectedly, ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS will offset losses from the drop in ELL ENVIRONHLDGS's long position.| COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc |
| ELL ENVIRONHLDGS vs. Waste Management | ELL ENVIRONHLDGS vs. Republic Services | ELL ENVIRONHLDGS vs. Waste Connections | ELL ENVIRONHLDGS vs. Veolia Environnement SA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |