Correlation Between COSMOSTEEL HLDGS and Boeing
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS and Boeing 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 Boeing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and The Boeing, you can compare the effects of market volatilities on COSMOSTEEL HLDGS and Boeing 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 Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and Boeing.
Diversification Opportunities for COSMOSTEEL HLDGS and Boeing
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COSMOSTEEL and Boeing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing 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 Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing has no effect on the direction of COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and Boeing go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and Boeing
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 1.94 times more return on investment than Boeing. However, COSMOSTEEL HLDGS is 1.94 times more volatile than The Boeing. It trades about 0.25 of its potential returns per unit of risk. The Boeing is currently generating about 0.34 per unit of risk. If you would invest 6.05 in COSMOSTEEL HLDGS on September 13, 2024 and sell it today you would earn a total of 1.35 from holding COSMOSTEEL HLDGS or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. The Boeing
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| Boeing |
COSMOSTEEL HLDGS and Boeing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and Boeing
The main advantage of trading using opposite COSMOSTEEL HLDGS and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS position performs unexpectedly, Boeing 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 Boeing will offset losses from the drop in Boeing's long position.| COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc |
| Boeing vs. Airbus SE | Boeing vs. General Dynamics | Boeing vs. Superior Plus Corp | Boeing vs. Origin Agritech |
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 Stocks Directory module to find actively traded stocks across global markets.
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