Correlation Between GEO and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both GEO and COSMOSTEEL HLDGS 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 GEO and COSMOSTEEL HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The GEO Group and COSMOSTEEL HLDGS, you can compare the effects of market volatilities on GEO and COSMOSTEEL HLDGS 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 GEO with a short position of COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEO and COSMOSTEEL HLDGS.
Diversification Opportunities for GEO and COSMOSTEEL HLDGS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GEO and COSMOSTEEL is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding The GEO Group and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS and GEO 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 The GEO Group are associated (or correlated) with COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of GEO i.e., GEO and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between GEO and COSMOSTEEL HLDGS
Assuming the 90 days horizon The GEO Group is expected to generate 5.19 times more return on investment than COSMOSTEEL HLDGS. However, GEO is 5.19 times more volatile than COSMOSTEEL HLDGS. It trades about 0.36 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about 0.19 per unit of risk. If you would invest 1,303 in The GEO Group on September 4, 2024 and sell it today you would earn a total of 1,290 from holding The GEO Group or generate 99.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
The GEO Group vs. COSMOSTEEL HLDGS
Performance |
| Timeline |
| GEO Group |
| COSMOSTEEL HLDGS |
GEO and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEO and COSMOSTEEL HLDGS
The main advantage of trading using opposite GEO and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEO position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS's long position.| GEO vs. Welltower | GEO vs. Omega Healthcare Investors | GEO vs. Medical Properties Trust | GEO vs. Sabra Health Care |
| COSMOSTEEL HLDGS vs. TOTAL GABON | COSMOSTEEL HLDGS vs. Walgreens Boots Alliance | COSMOSTEEL HLDGS vs. Peak Resources Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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