Correlation Between Cosan SA and CodeLab Capital
Can any of the company-specific risk be diversified away by investing in both Cosan SA and CodeLab Capital 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 Cosan SA and CodeLab Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosan SA ADR and CodeLab Capital AS, you can compare the effects of market volatilities on Cosan SA and CodeLab Capital 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 Cosan SA with a short position of CodeLab Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosan SA and CodeLab Capital.
Diversification Opportunities for Cosan SA and CodeLab Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cosan and CodeLab is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cosan SA ADR and CodeLab Capital AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CodeLab Capital AS and Cosan SA 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 Cosan SA ADR are associated (or correlated) with CodeLab Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CodeLab Capital AS has no effect on the direction of Cosan SA i.e., Cosan SA and CodeLab Capital go up and down completely randomly.
Pair Corralation between Cosan SA and CodeLab Capital
Given the investment horizon of 90 days Cosan SA is expected to generate 2.24 times less return on investment than CodeLab Capital. But when comparing it to its historical volatility, Cosan SA ADR is 2.97 times less risky than CodeLab Capital. It trades about 0.05 of its potential returns per unit of risk. CodeLab Capital AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 246.00 in CodeLab Capital AS on November 30, 2025 and sell it today you would lose (5.00) from holding CodeLab Capital AS or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosan SA ADR vs. CodeLab Capital AS
Performance |
| Timeline |
| Cosan SA ADR |
| CodeLab Capital AS |
Cosan SA and CodeLab Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosan SA and CodeLab Capital
The main advantage of trading using opposite Cosan SA and CodeLab Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosan SA position performs unexpectedly, CodeLab Capital 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 CodeLab Capital will offset losses from the drop in CodeLab Capital's long position.| Cosan SA vs. Delek Energy | Cosan SA vs. Par Pacific Holdings | Cosan SA vs. Torm PLC Class | Cosan SA vs. Northern Oil Gas |
| CodeLab Capital vs. Haugesund Sparebank | CodeLab Capital vs. Instabank ASA | CodeLab Capital vs. SD Standard Drilling | CodeLab Capital vs. Odfjell Drilling |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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