Correlation Between FleetPartners and Cosmo Metals
Can any of the company-specific risk be diversified away by investing in both FleetPartners and Cosmo Metals 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 FleetPartners and Cosmo Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FleetPartners Group and Cosmo Metals, you can compare the effects of market volatilities on FleetPartners and Cosmo Metals 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 FleetPartners with a short position of Cosmo Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of FleetPartners and Cosmo Metals.
Diversification Opportunities for FleetPartners and Cosmo Metals
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FleetPartners and Cosmo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding FleetPartners Group and Cosmo Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmo Metals and FleetPartners 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 FleetPartners Group are associated (or correlated) with Cosmo Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmo Metals has no effect on the direction of FleetPartners i.e., FleetPartners and Cosmo Metals go up and down completely randomly.
Pair Corralation between FleetPartners and Cosmo Metals
Assuming the 90 days trading horizon FleetPartners Group is expected to generate 0.75 times more return on investment than Cosmo Metals. However, FleetPartners Group is 1.34 times less risky than Cosmo Metals. It trades about 0.14 of its potential returns per unit of risk. Cosmo Metals is currently generating about -0.39 per unit of risk. If you would invest 264.00 in FleetPartners Group on November 4, 2024 and sell it today you would earn a total of 17.00 from holding FleetPartners Group or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FleetPartners Group vs. Cosmo Metals
Performance |
| Timeline |
| FleetPartners Group |
| Cosmo Metals |
FleetPartners and Cosmo Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FleetPartners and Cosmo Metals
The main advantage of trading using opposite FleetPartners and Cosmo Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FleetPartners position performs unexpectedly, Cosmo Metals 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 Cosmo Metals will offset losses from the drop in Cosmo Metals' long position.| FleetPartners vs. Macquarie Bank Limited | FleetPartners vs. Stelar Metals | FleetPartners vs. Kkr Credit Income | FleetPartners vs. Bell Financial Group |
| Cosmo Metals vs. Nufarm Finance NZ | Cosmo Metals vs. Charter Hall Retail | Cosmo Metals vs. Dug Technology | Cosmo Metals vs. Retail Food Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |