Correlation Between Imagicaaworld Entertainment and COSMO FIRST
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By analyzing existing cross correlation between Imagicaaworld Entertainment Limited and COSMO FIRST LIMITED, you can compare the effects of market volatilities on Imagicaaworld Entertainment 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 Imagicaaworld Entertainment with a short position of COSMO FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imagicaaworld Entertainment and COSMO FIRST.
Diversification Opportunities for Imagicaaworld Entertainment and COSMO FIRST
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Imagicaaworld and COSMO is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Imagicaaworld Entertainment Li 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 Imagicaaworld Entertainment 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 Imagicaaworld Entertainment Limited 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 Imagicaaworld Entertainment i.e., Imagicaaworld Entertainment and COSMO FIRST go up and down completely randomly.
Pair Corralation between Imagicaaworld Entertainment and COSMO FIRST
Assuming the 90 days trading horizon Imagicaaworld Entertainment Limited is expected to under-perform the COSMO FIRST. But the stock apears to be less risky and, when comparing its historical volatility, Imagicaaworld Entertainment Limited is 1.23 times less risky than COSMO FIRST. The stock trades about -0.06 of its potential returns per unit of risk. The COSMO FIRST LIMITED is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 87,225 in COSMO FIRST LIMITED on October 26, 2024 and sell it today you would lose (5,900) from holding COSMO FIRST LIMITED or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imagicaaworld Entertainment Li vs. COSMO FIRST LIMITED
Performance |
| Timeline |
| Imagicaaworld Entertainment |
| COSMO FIRST LIMITED |
Imagicaaworld Entertainment and COSMO FIRST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imagicaaworld Entertainment and COSMO FIRST
The main advantage of trading using opposite Imagicaaworld Entertainment and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imagicaaworld Entertainment 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.The idea behind Imagicaaworld Entertainment Limited and COSMO FIRST LIMITED pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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