Correlation Between Nufarm and Cosmo Metals
Can any of the company-specific risk be diversified away by investing in both Nufarm and Cosmo Metals 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 Nufarm and Cosmo Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nufarm and Cosmo Metals, you can compare the effects of market volatilities on Nufarm and Cosmo Metals 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 Nufarm with a short position of Cosmo Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nufarm and Cosmo Metals.
Diversification Opportunities for Nufarm and Cosmo Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nufarm and Cosmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nufarm and Cosmo Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmo Metals and Nufarm 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 Nufarm are associated (or correlated) with Cosmo Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmo Metals has no effect on the direction of Nufarm i.e., Nufarm and Cosmo Metals go up and down completely randomly.
Pair Corralation between Nufarm and Cosmo Metals
If you would invest 0.00 in Nufarm on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Nufarm or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Nufarm vs. Cosmo Metals
Performance |
| Timeline |
| Nufarm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cosmo Metals |
Nufarm and Cosmo Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nufarm and Cosmo Metals
The main advantage of trading using opposite Nufarm and Cosmo Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nufarm position performs unexpectedly, Cosmo Metals 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 Metals will offset losses from the drop in Cosmo Metals' long position.| Nufarm vs. Clime Investment Management | Nufarm vs. Advanced Braking Technology | Nufarm vs. A1 Investments Resources | Nufarm vs. Kip McGrath Education |
| Cosmo Metals vs. Nufarm Finance NZ | Cosmo Metals vs. Charter Hall Retail | Cosmo Metals vs. Dug Technology | Cosmo Metals vs. Retail Food Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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