Correlation Between COSMO FIRST and VIP Clothing
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By analyzing existing cross correlation between COSMO FIRST LIMITED and VIP Clothing Limited, you can compare the effects of market volatilities on COSMO FIRST and VIP Clothing 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 VIP Clothing. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and VIP Clothing.
Diversification Opportunities for COSMO FIRST and VIP Clothing
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COSMO and VIP is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and VIP Clothing Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIP Clothing 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 VIP Clothing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIP Clothing Limited has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and VIP Clothing go up and down completely randomly.
Pair Corralation between COSMO FIRST and VIP Clothing
Assuming the 90 days trading horizon COSMO FIRST is expected to generate 1.35 times less return on investment than VIP Clothing. But when comparing it to its historical volatility, COSMO FIRST LIMITED is 1.45 times less risky than VIP Clothing. It trades about 0.34 of its potential returns per unit of risk. VIP Clothing Limited is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 4,052 in VIP Clothing Limited on September 12, 2024 and sell it today you would earn a total of 933.00 from holding VIP Clothing Limited or generate 23.03% 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. VIP Clothing Limited
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| VIP Clothing Limited |
COSMO FIRST and VIP Clothing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and VIP Clothing
The main advantage of trading using opposite COSMO FIRST and VIP Clothing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, VIP Clothing 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 VIP Clothing will offset losses from the drop in VIP Clothing's long position.| COSMO FIRST vs. Hindustan Copper Limited | COSMO FIRST vs. Newgen Software Technologies | COSMO FIRST vs. Selan Exploration Technology | COSMO FIRST vs. Life Insurance |
| VIP Clothing vs. Hemisphere Properties India | VIP Clothing vs. Indo Borax Chemicals | VIP Clothing vs. Kingfa Science Technology | VIP Clothing vs. Alkali Metals 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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