Correlation Between COSTCO WHOLESALE and Mosaic
Can any of the company-specific risk be diversified away by investing in both COSTCO WHOLESALE and Mosaic 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 Mosaic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSTCO WHOLESALE CDR and The Mosaic, you can compare the effects of market volatilities on COSTCO WHOLESALE and Mosaic 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 Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSTCO WHOLESALE and Mosaic.
Diversification Opportunities for COSTCO WHOLESALE and Mosaic
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COSTCO and Mosaic is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding COSTCO WHOLESALE CDR and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic 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 CDR are associated (or correlated) with Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of COSTCO WHOLESALE i.e., COSTCO WHOLESALE and Mosaic go up and down completely randomly.
Pair Corralation between COSTCO WHOLESALE and Mosaic
Assuming the 90 days trading horizon COSTCO WHOLESALE CDR is expected to generate 0.67 times more return on investment than Mosaic. However, COSTCO WHOLESALE CDR is 1.5 times less risky than Mosaic. It trades about 0.18 of its potential returns per unit of risk. The Mosaic is currently generating about 0.08 per unit of risk. If you would invest 2,920 in COSTCO WHOLESALE CDR on September 15, 2024 and sell it today you would earn a total of 180.00 from holding COSTCO WHOLESALE CDR or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSTCO WHOLESALE CDR vs. The Mosaic
Performance |
| Timeline |
| COSTCO WHOLESALE CDR |
| Mosaic |
COSTCO WHOLESALE and Mosaic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSTCO WHOLESALE and Mosaic
The main advantage of trading using opposite COSTCO WHOLESALE and Mosaic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSTCO WHOLESALE position performs unexpectedly, Mosaic 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 Mosaic will offset losses from the drop in Mosaic's long position.| COSTCO WHOLESALE vs. AXWAY SOFTWARE EO | COSTCO WHOLESALE vs. CHINA EDUCATION GROUP | COSTCO WHOLESALE vs. VITEC SOFTWARE GROUP | COSTCO WHOLESALE vs. Alfa Financial Software |
| Mosaic vs. Global Ship Lease | Mosaic vs. MCEWEN MINING INC | Mosaic vs. GRIFFIN MINING LTD | Mosaic vs. Datalogic SpA |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |