Correlation Between COSMO FIRST and General Insurance
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By analyzing existing cross correlation between COSMO FIRST LIMITED and General Insurance, you can compare the effects of market volatilities on COSMO FIRST and General Insurance 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 General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and General Insurance.
Diversification Opportunities for COSMO FIRST and General Insurance
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COSMO and General is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance 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 General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and General Insurance go up and down completely randomly.
Pair Corralation between COSMO FIRST and General Insurance
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 1.17 times more return on investment than General Insurance. However, COSMO FIRST is 1.17 times more volatile than General Insurance. It trades about 0.03 of its potential returns per unit of risk. General Insurance is currently generating about 0.02 per unit of risk. If you would invest 49,518 in COSMO FIRST LIMITED on December 4, 2024 and sell it today you would earn a total of 7,587 from holding COSMO FIRST LIMITED or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. General Insurance
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| General Insurance |
COSMO FIRST and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and General Insurance
The main advantage of trading using opposite COSMO FIRST and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, General Insurance 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 General Insurance will offset losses from the drop in General Insurance's long position.| COSMO FIRST vs. Indian Card Clothing | COSMO FIRST vs. Infomedia Press Limited | COSMO FIRST vs. Chalet Hotels Limited | COSMO FIRST vs. Viceroy Hotels Limited |
| General Insurance vs. Vertoz Advertising Limited | General Insurance vs. Beta Drugs | General Insurance vs. Mangalam Drugs And | General Insurance vs. Manaksia Coated Metals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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