Correlation Between Hyster Yale and Cosmos Group
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Cosmos Group 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 Hyster Yale and Cosmos Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and Cosmos Group Holdings, you can compare the effects of market volatilities on Hyster Yale and Cosmos Group 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 Hyster Yale with a short position of Cosmos Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Cosmos Group.
Diversification Opportunities for Hyster Yale and Cosmos Group
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster and Cosmos is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Cosmos Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Group Holdings and Hyster Yale 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 Hyster Yale Materials Handling are associated (or correlated) with Cosmos Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Group Holdings has no effect on the direction of Hyster Yale i.e., Hyster Yale and Cosmos Group go up and down completely randomly.
Pair Corralation between Hyster Yale and Cosmos Group
If you would invest 0.02 in Cosmos Group Holdings on November 28, 2024 and sell it today you would lose (0.01) from holding Cosmos Group Holdings or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Cosmos Group Holdings
Performance |
| Timeline |
| Hyster Yale Materials |
| Cosmos Group Holdings |
Hyster Yale and Cosmos Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Cosmos Group
The main advantage of trading using opposite Hyster Yale and Cosmos Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Cosmos Group 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 Cosmos Group will offset losses from the drop in Cosmos Group's long position.| Hyster Yale vs. Astec Industries | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group | Hyster Yale vs. Alamo Group |
| Cosmos Group vs. Zip Co Limited | Cosmos Group vs. Regional Management Corp | Cosmos Group vs. Enova International | Cosmos Group vs. Open Lending Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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