Correlation Between Finexia Financial and CogState
Can any of the company-specific risk be diversified away by investing in both Finexia Financial and CogState 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 Finexia Financial and CogState into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and CogState, you can compare the effects of market volatilities on Finexia Financial and CogState 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 Finexia Financial with a short position of CogState. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and CogState.
Diversification Opportunities for Finexia Financial and CogState
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Finexia and CogState is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and CogState in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CogState and Finexia Financial 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 Finexia Financial Group are associated (or correlated) with CogState. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CogState has no effect on the direction of Finexia Financial i.e., Finexia Financial and CogState go up and down completely randomly.
Pair Corralation between Finexia Financial and CogState
Assuming the 90 days trading horizon Finexia Financial Group is expected to generate 1.24 times more return on investment than CogState. However, Finexia Financial is 1.24 times more volatile than CogState. It trades about 0.04 of its potential returns per unit of risk. CogState is currently generating about 0.02 per unit of risk. If you would invest 23.00 in Finexia Financial Group on December 2, 2024 and sell it today you would earn a total of 5.00 from holding Finexia Financial Group or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. CogState
Performance |
| Timeline |
| Finexia Financial |
| CogState |
Finexia Financial and CogState Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and CogState
The main advantage of trading using opposite Finexia Financial and CogState positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, CogState 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 CogState will offset losses from the drop in CogState's long position.| Finexia Financial vs. Centrex Metals | Finexia Financial vs. Health and Plant | Finexia Financial vs. MotorCycle Holdings | Finexia Financial vs. Sky Metals |
| CogState vs. Aurelia Metals | CogState vs. ACDC Metals | CogState vs. Technology One | CogState vs. Falcon Metals |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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