Correlation Between COSMO FIRST and CSB Bank
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By analyzing existing cross correlation between COSMO FIRST LIMITED and CSB Bank Limited, you can compare the effects of market volatilities on COSMO FIRST and CSB Bank 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 CSB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and CSB Bank.
Diversification Opportunities for COSMO FIRST and CSB Bank
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COSMO and CSB is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and CSB Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSB Bank Limited 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 CSB Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSB Bank Limited has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and CSB Bank go up and down completely randomly.
Pair Corralation between COSMO FIRST and CSB Bank
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 2.29 times more return on investment than CSB Bank. However, COSMO FIRST is 2.29 times more volatile than CSB Bank Limited. It trades about 0.23 of its potential returns per unit of risk. CSB Bank Limited is currently generating about 0.14 per unit of risk. If you would invest 77,715 in COSMO FIRST LIMITED on September 29, 2024 and sell it today you would earn a total of 17,275 from holding COSMO FIRST LIMITED or generate 22.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. CSB Bank Limited
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| CSB Bank Limited |
COSMO FIRST and CSB Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and CSB Bank
The main advantage of trading using opposite COSMO FIRST and CSB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, CSB Bank 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 CSB Bank will offset losses from the drop in CSB Bank's long position.| COSMO FIRST vs. NMDC Limited | COSMO FIRST vs. Steel Authority of | COSMO FIRST vs. Embassy Office Parks | COSMO FIRST vs. Gujarat Narmada Valley |
| CSB Bank vs. Kingfa Science Technology | CSB Bank vs. Rico Auto Industries | CSB Bank vs. GACM Technologies Limited | CSB Bank vs. COSMO FIRST LIMITED |
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 CEOs Directory module to screen CEOs from public companies around the world.
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