Correlation Between COSMOSTEEL HLDGS and TSOGO SUN
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS and TSOGO SUN 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 TSOGO SUN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and TSOGO SUN GAMING, you can compare the effects of market volatilities on COSMOSTEEL HLDGS and TSOGO SUN 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 TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and TSOGO SUN.
Diversification Opportunities for COSMOSTEEL HLDGS and TSOGO SUN
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COSMOSTEEL and TSOGO is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING 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 TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and TSOGO SUN go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and TSOGO SUN
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to under-perform the TSOGO SUN. In addition to that, COSMOSTEEL HLDGS is 1.2 times more volatile than TSOGO SUN GAMING. It trades about -0.01 of its total potential returns per unit of risk. TSOGO SUN GAMING is currently generating about 0.08 per unit of volatility. If you would invest 51.00 in TSOGO SUN GAMING on August 29, 2024 and sell it today you would earn a total of 9.00 from holding TSOGO SUN GAMING or generate 17.65% 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. TSOGO SUN GAMING
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| TSOGO SUN GAMING |
COSMOSTEEL HLDGS and TSOGO SUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and TSOGO SUN
The main advantage of trading using opposite COSMOSTEEL HLDGS and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN's long position.| COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Apple Inc | COSMOSTEEL HLDGS vs. Superior Plus Corp | COSMOSTEEL HLDGS vs. SIVERS SEMICONDUCTORS AB |
| TSOGO SUN vs. Perseus Mining Limited | TSOGO SUN vs. Evolution Mining Limited | TSOGO SUN vs. COSMOSTEEL HLDGS | TSOGO SUN vs. RELIANCE STEEL AL |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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