Correlation Between COSMO FIRST and GTL
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By analyzing existing cross correlation between COSMO FIRST LIMITED and GTL Limited, you can compare the effects of market volatilities on COSMO FIRST and GTL 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 GTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and GTL.
Diversification Opportunities for COSMO FIRST and GTL
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COSMO and GTL is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and GTL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTL 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 GTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTL Limited has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and GTL go up and down completely randomly.
Pair Corralation between COSMO FIRST and GTL
Assuming the 90 days trading horizon COSMO FIRST is expected to generate 6.29 times less return on investment than GTL. But when comparing it to its historical volatility, COSMO FIRST LIMITED is 1.75 times less risky than GTL. It trades about 0.01 of its potential returns per unit of risk. GTL Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 875.00 in GTL Limited on August 30, 2024 and sell it today you would earn a total of 420.00 from holding GTL Limited or generate 48.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. GTL Limited
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| GTL Limited |
COSMO FIRST and GTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and GTL
The main advantage of trading using opposite COSMO FIRST and GTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, GTL 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 GTL will offset losses from the drop in GTL'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 |
| GTL vs. SINCLAIRS HOTELS ORD | GTL vs. Usha Martin Education | GTL vs. Global Education Limited | GTL vs. G Tec Jainx Education |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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