Correlation Between COSMO FIRST and Kilitch Drugs
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By analyzing existing cross correlation between COSMO FIRST LIMITED and Kilitch Drugs Limited, you can compare the effects of market volatilities on COSMO FIRST and Kilitch Drugs 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 Kilitch Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and Kilitch Drugs.
Diversification Opportunities for COSMO FIRST and Kilitch Drugs
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COSMO and Kilitch is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and Kilitch Drugs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilitch Drugs 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 Kilitch Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilitch Drugs Limited has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and Kilitch Drugs go up and down completely randomly.
Pair Corralation between COSMO FIRST and Kilitch Drugs
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to under-perform the Kilitch Drugs. But the stock apears to be less risky and, when comparing its historical volatility, COSMO FIRST LIMITED is 1.25 times less risky than Kilitch Drugs. The stock trades about -0.11 of its potential returns per unit of risk. The Kilitch Drugs Limited is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 34,110 in Kilitch Drugs Limited on August 25, 2024 and sell it today you would lose (3,105) from holding Kilitch Drugs Limited or give up 9.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. Kilitch Drugs Limited
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| Kilitch Drugs Limited |
COSMO FIRST and Kilitch Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and Kilitch Drugs
The main advantage of trading using opposite COSMO FIRST and Kilitch Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, Kilitch Drugs 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 Kilitch Drugs will offset losses from the drop in Kilitch Drugs' long position.| COSMO FIRST vs. ADF Foods Limited | COSMO FIRST vs. Dodla Dairy Limited | COSMO FIRST vs. Datamatics Global Services | COSMO FIRST vs. R S Software |
| Kilitch Drugs vs. Kingfa Science Technology | Kilitch Drugs vs. Rico Auto Industries | Kilitch Drugs vs. GACM Technologies Limited | Kilitch Drugs 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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