Correlation Between COSMO FIRST and Speciality Restaurants
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By analyzing existing cross correlation between COSMO FIRST LIMITED and Speciality Restaurants Limited, you can compare the effects of market volatilities on COSMO FIRST and Speciality Restaurants 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 Speciality Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and Speciality Restaurants.
Diversification Opportunities for COSMO FIRST and Speciality Restaurants
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COSMO and Speciality is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and Speciality Restaurants Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speciality Restaurants 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 Speciality Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speciality Restaurants has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and Speciality Restaurants go up and down completely randomly.
Pair Corralation between COSMO FIRST and Speciality Restaurants
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 3.37 times more return on investment than Speciality Restaurants. However, COSMO FIRST is 3.37 times more volatile than Speciality Restaurants Limited. It trades about 0.3 of its potential returns per unit of risk. Speciality Restaurants Limited is currently generating about -0.12 per unit of risk. If you would invest 74,375 in COSMO FIRST LIMITED on September 23, 2024 and sell it today you would earn a total of 21,030 from holding COSMO FIRST LIMITED or generate 28.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. Speciality Restaurants Limited
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| Speciality Restaurants |
COSMO FIRST and Speciality Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and Speciality Restaurants
The main advantage of trading using opposite COSMO FIRST and Speciality Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, Speciality Restaurants 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 Speciality Restaurants will offset losses from the drop in Speciality Restaurants' long position.| COSMO FIRST vs. Associated Alcohols Breweries | COSMO FIRST vs. Hisar Metal Industries | COSMO FIRST vs. Bharat Road Network | COSMO FIRST vs. Generic Engineering Construction |
| Speciality Restaurants vs. Kingfa Science Technology | Speciality Restaurants vs. Rico Auto Industries | Speciality Restaurants vs. GACM Technologies Limited | Speciality Restaurants 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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