Correlation Between Cosmos Group and XS Financial
Can any of the company-specific risk be diversified away by investing in both Cosmos Group and XS Financial 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 Cosmos Group and XS Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos Group Holdings and XS Financial, you can compare the effects of market volatilities on Cosmos Group and XS Financial 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 Cosmos Group with a short position of XS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Group and XS Financial.
Diversification Opportunities for Cosmos Group and XS Financial
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cosmos and XSHLF is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Group Holdings and XS Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XS Financial and Cosmos Group 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 Cosmos Group Holdings are associated (or correlated) with XS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XS Financial has no effect on the direction of Cosmos Group i.e., Cosmos Group and XS Financial go up and down completely randomly.
Pair Corralation between Cosmos Group and XS Financial
If you would invest 0.01 in Cosmos Group Holdings on August 30, 2024 and sell it today you would lose (0.01) from holding Cosmos Group Holdings or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cosmos Group Holdings vs. XS Financial
Performance |
| Timeline |
| Cosmos Group Holdings |
| XS Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Cosmos Group and XS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmos Group and XS Financial
The main advantage of trading using opposite Cosmos Group and XS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Group position performs unexpectedly, XS Financial 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 XS Financial will offset losses from the drop in XS Financial's long position.| Cosmos Group vs. Deere Company | Cosmos Group vs. Columbus McKinnon | Cosmos Group vs. Hyster Yale Materials Handling | Cosmos Group vs. Manitowoc |
| XS Financial vs. Zip Co Limited | XS Financial vs. KYN Capital Group | XS Financial vs. CYIOS | XS Financial vs. Cosmos Group Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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