Correlation Between Generic Engineering and COSMO FIRST
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By analyzing existing cross correlation between Generic Engineering Construction and COSMO FIRST LIMITED, you can compare the effects of market volatilities on Generic Engineering and COSMO FIRST 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 Generic Engineering with a short position of COSMO FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generic Engineering and COSMO FIRST.
Diversification Opportunities for Generic Engineering and COSMO FIRST
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Generic and COSMO is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Generic Engineering Constructi and COSMO FIRST LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMO FIRST LIMITED and Generic Engineering 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 Generic Engineering Construction are associated (or correlated) with COSMO FIRST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMO FIRST LIMITED has no effect on the direction of Generic Engineering i.e., Generic Engineering and COSMO FIRST go up and down completely randomly.
Pair Corralation between Generic Engineering and COSMO FIRST
Assuming the 90 days trading horizon Generic Engineering is expected to generate 1.38 times less return on investment than COSMO FIRST. But when comparing it to its historical volatility, Generic Engineering Construction is 1.07 times less risky than COSMO FIRST. It trades about 0.14 of its potential returns per unit of risk. COSMO FIRST LIMITED is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 76,040 in COSMO FIRST LIMITED on September 23, 2024 and sell it today you would earn a total of 19,365 from holding COSMO FIRST LIMITED or generate 25.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generic Engineering Constructi vs. COSMO FIRST LIMITED
Performance |
| Timeline |
| Generic Engineering |
| COSMO FIRST LIMITED |
Generic Engineering and COSMO FIRST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generic Engineering and COSMO FIRST
The main advantage of trading using opposite Generic Engineering and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generic Engineering position performs unexpectedly, COSMO FIRST 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 FIRST will offset losses from the drop in COSMO FIRST's long position.| Generic Engineering vs. UTI Asset Management | Generic Engineering vs. Akums Drugs and | Generic Engineering vs. Ami Organics Limited | Generic Engineering vs. Sapphire Foods India |
| COSMO FIRST vs. Associated Alcohols Breweries | COSMO FIRST vs. Hisar Metal Industries | COSMO FIRST vs. Bharat Road Network | COSMO FIRST vs. Generic Engineering Construction |
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.
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