Correlation Between Cosco Capital and Top Frontier
Can any of the company-specific risk be diversified away by investing in both Cosco Capital and Top Frontier 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 Top Frontier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosco Capital and Top Frontier Investment, you can compare the effects of market volatilities on Cosco Capital and Top Frontier 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 Top Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosco Capital and Top Frontier.
Diversification Opportunities for Cosco Capital and Top Frontier
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cosco and Top is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cosco Capital and Top Frontier Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top Frontier Investment 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 Top Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top Frontier Investment has no effect on the direction of Cosco Capital i.e., Cosco Capital and Top Frontier go up and down completely randomly.
Pair Corralation between Cosco Capital and Top Frontier
Assuming the 90 days trading horizon Cosco Capital is expected to generate 0.31 times more return on investment than Top Frontier. However, Cosco Capital is 3.22 times less risky than Top Frontier. It trades about 0.06 of its potential returns per unit of risk. Top Frontier Investment is currently generating about 0.0 per unit of risk. If you would invest 372.00 in Cosco Capital on September 3, 2024 and sell it today you would earn a total of 158.00 from holding Cosco Capital or generate 42.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.21% |
| Values | Daily Returns |
Cosco Capital vs. Top Frontier Investment
Performance |
| Timeline |
| Cosco Capital |
| Top Frontier Investment |
Cosco Capital and Top Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosco Capital and Top Frontier
The main advantage of trading using opposite Cosco Capital and Top Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosco Capital position performs unexpectedly, Top Frontier 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 Top Frontier will offset losses from the drop in Top Frontier's long position.| Cosco Capital vs. Semirara Mining Corp | Cosco Capital vs. Figaro Coffee Group | Cosco Capital vs. Premiere Entertainment | Cosco Capital vs. Manila Mining Corp |
| Top Frontier vs. Security Bank Corp | Top Frontier vs. COL Financial Group | Top Frontier vs. Semirara Mining Corp | Top Frontier vs. SM Investments Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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