Correlation Between Cosco Capital and Balai Ni
Can any of the company-specific risk be diversified away by investing in both Cosco Capital and Balai Ni 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 Cosco Capital and Balai Ni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosco Capital and Balai Ni Fruitas, you can compare the effects of market volatilities on Cosco Capital and Balai Ni 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 Cosco Capital with a short position of Balai Ni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosco Capital and Balai Ni.
Diversification Opportunities for Cosco Capital and Balai Ni
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cosco and Balai is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cosco Capital and Balai Ni Fruitas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balai Ni Fruitas and Cosco Capital 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 Cosco Capital are associated (or correlated) with Balai Ni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balai Ni Fruitas has no effect on the direction of Cosco Capital i.e., Cosco Capital and Balai Ni go up and down completely randomly.
Pair Corralation between Cosco Capital and Balai Ni
Assuming the 90 days trading horizon Cosco Capital is expected to under-perform the Balai Ni. But the stock apears to be less risky and, when comparing its historical volatility, Cosco Capital is 2.42 times less risky than Balai Ni. The stock trades about -0.06 of its potential returns per unit of risk. The Balai Ni Fruitas is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Balai Ni Fruitas on September 1, 2024 and sell it today you would lose (1.00) from holding Balai Ni Fruitas or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Cosco Capital vs. Balai Ni Fruitas
Performance |
| Timeline |
| Cosco Capital |
| Balai Ni Fruitas |
Cosco Capital and Balai Ni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosco Capital and Balai Ni
The main advantage of trading using opposite Cosco Capital and Balai Ni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosco Capital position performs unexpectedly, Balai Ni 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 Balai Ni will offset losses from the drop in Balai Ni's long position.| Cosco Capital vs. Top Frontier Investment | Cosco Capital vs. Lepanto Consolidated Mining | Cosco Capital vs. Transpacific Broadband Group | Cosco Capital vs. Apex Mining Co |
| Balai Ni vs. Manila Mining Corp | Balai Ni vs. Philippine Savings Bank | Balai Ni vs. Jollibee Foods Corp | Balai Ni vs. Metro Retail Stores |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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