Correlation Between Cshg Logistica and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both Cshg Logistica and Costco Wholesale 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 Cshg Logistica and Costco Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cshg Logistica and Costco Wholesale, you can compare the effects of market volatilities on Cshg Logistica and Costco Wholesale 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 Cshg Logistica with a short position of Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Logistica and Costco Wholesale.
Diversification Opportunities for Cshg Logistica and Costco Wholesale
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cshg and Costco is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Logistica and Costco Wholesale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale and Cshg Logistica 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 Cshg Logistica are associated (or correlated) with Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale has no effect on the direction of Cshg Logistica i.e., Cshg Logistica and Costco Wholesale go up and down completely randomly.
Pair Corralation between Cshg Logistica and Costco Wholesale
Assuming the 90 days trading horizon Cshg Logistica is expected to under-perform the Costco Wholesale. But the fund apears to be less risky and, when comparing its historical volatility, Cshg Logistica is 2.53 times less risky than Costco Wholesale. The fund trades about -0.01 of its potential returns per unit of risk. The Costco Wholesale is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 6,180 in Costco Wholesale on August 31, 2024 and sell it today you would earn a total of 8,324 from holding Costco Wholesale or generate 134.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cshg Logistica vs. Costco Wholesale
Performance |
| Timeline |
| Cshg Logistica |
| Costco Wholesale |
Cshg Logistica and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cshg Logistica and Costco Wholesale
The main advantage of trading using opposite Cshg Logistica and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cshg Logistica position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.| Cshg Logistica vs. Energisa SA | Cshg Logistica vs. BTG Pactual Logstica | Cshg Logistica vs. Plano Plano Desenvolvimento | Cshg Logistica vs. Companhia Habitasul de |
| Costco Wholesale vs. Walmart | Costco Wholesale vs. Fras le SA | Costco Wholesale vs. Energisa SA | Costco Wholesale vs. Clave Indices De |
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.
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