Correlation Between Costco Wholesale and Genworth Financial
Can any of the company-specific risk be diversified away by investing in both Costco Wholesale and Genworth Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Costco Wholesale and Genworth Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costco Wholesale and Genworth Financial, you can compare the effects of market volatilities on Costco Wholesale and Genworth Financial 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 Costco Wholesale with a short position of Genworth Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costco Wholesale and Genworth Financial.
Diversification Opportunities for Costco Wholesale and Genworth Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Costco and Genworth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Costco Wholesale and Genworth Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genworth Financial and Costco Wholesale 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 Costco Wholesale are associated (or correlated) with Genworth Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genworth Financial has no effect on the direction of Costco Wholesale i.e., Costco Wholesale and Genworth Financial go up and down completely randomly.
Pair Corralation between Costco Wholesale and Genworth Financial
If you would invest 1,777,375 in Costco Wholesale on September 2, 2024 and sell it today you would earn a total of 203,125 from holding Costco Wholesale or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Costco Wholesale vs. Genworth Financial
Performance |
| Timeline |
| Costco Wholesale |
| Genworth Financial |
Costco Wholesale and Genworth Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costco Wholesale and Genworth Financial
The main advantage of trading using opposite Costco Wholesale and Genworth Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costco Wholesale position performs unexpectedly, Genworth Financial 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 Genworth Financial will offset losses from the drop in Genworth Financial's long position.| Costco Wholesale vs. Hoteles City Express | Costco Wholesale vs. Monster Beverage Corp | Costco Wholesale vs. Grupo Hotelero Santa | Costco Wholesale vs. FibraHotel |
| Genworth Financial vs. First Majestic Silver | Genworth Financial vs. Verizon Communications | Genworth Financial vs. Deutsche Bank Aktiengesellschaft | Genworth Financial vs. DXC Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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