Correlation Between COSMO FIRST and Chemcon Speciality
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By analyzing existing cross correlation between COSMO FIRST LIMITED and Chemcon Speciality Chemicals, you can compare the effects of market volatilities on COSMO FIRST and Chemcon Speciality 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 COSMO FIRST with a short position of Chemcon Speciality. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and Chemcon Speciality.
Diversification Opportunities for COSMO FIRST and Chemcon Speciality
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COSMO and Chemcon is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and Chemcon Speciality Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemcon Speciality and COSMO FIRST 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 COSMO FIRST LIMITED are associated (or correlated) with Chemcon Speciality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemcon Speciality has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and Chemcon Speciality go up and down completely randomly.
Pair Corralation between COSMO FIRST and Chemcon Speciality
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 1.41 times more return on investment than Chemcon Speciality. However, COSMO FIRST is 1.41 times more volatile than Chemcon Speciality Chemicals. It trades about 0.03 of its potential returns per unit of risk. Chemcon Speciality Chemicals is currently generating about -0.02 per unit of risk. If you would invest 69,556 in COSMO FIRST LIMITED on October 23, 2024 and sell it today you would earn a total of 15,134 from holding COSMO FIRST LIMITED or generate 21.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. Chemcon Speciality Chemicals
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| Chemcon Speciality |
COSMO FIRST and Chemcon Speciality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and Chemcon Speciality
The main advantage of trading using opposite COSMO FIRST and Chemcon Speciality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, Chemcon Speciality 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 Chemcon Speciality will offset losses from the drop in Chemcon Speciality's long position.| COSMO FIRST vs. 63 moons technologies | COSMO FIRST vs. AXISCADES Technologies Limited | COSMO FIRST vs. Silver Touch Technologies | COSMO FIRST vs. Dev Information Technology |
| Chemcon Speciality vs. Paramount Communications Limited | Chemcon Speciality vs. Indraprastha Medical | Chemcon Speciality vs. One 97 Communications | Chemcon Speciality vs. Styrenix Performance Materials |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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