Correlation Between Costco Wholesale and Linx SA
Can any of the company-specific risk be diversified away by investing in both Costco Wholesale and Linx SA 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 Linx SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costco Wholesale and Linx SA, you can compare the effects of market volatilities on Costco Wholesale and Linx SA 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 Linx SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costco Wholesale and Linx SA.
Diversification Opportunities for Costco Wholesale and Linx SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Costco and Linx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Costco Wholesale and Linx SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linx SA 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 Linx SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linx SA has no effect on the direction of Costco Wholesale i.e., Costco Wholesale and Linx SA go up and down completely randomly.
Pair Corralation between Costco Wholesale and Linx SA
If you would invest 13,409 in Costco Wholesale on September 13, 2024 and sell it today you would earn a total of 1,446 from holding Costco Wholesale or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Costco Wholesale vs. Linx SA
Performance |
| Timeline |
| Costco Wholesale |
| Linx SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Costco Wholesale and Linx SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costco Wholesale and Linx SA
The main advantage of trading using opposite Costco Wholesale and Linx SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costco Wholesale position performs unexpectedly, Linx SA 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 Linx SA will offset losses from the drop in Linx SA's long position.| Costco Wholesale vs. Fundo Investimento Imobiliario | Costco Wholesale vs. LESTE FDO INV | Costco Wholesale vs. Fras le SA | Costco Wholesale vs. Western Digital |
| Linx SA vs. MAHLE Metal Leve | Linx SA vs. Palantir Technologies | Linx SA vs. Bio Techne | Linx SA vs. Agilent Technologies |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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