Correlation Between REINET INVESTMENTS and Cogobuy
Can any of the company-specific risk be diversified away by investing in both REINET INVESTMENTS and Cogobuy 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 REINET INVESTMENTS and Cogobuy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REINET INVESTMENTS SCA and Cogobuy Group, you can compare the effects of market volatilities on REINET INVESTMENTS and Cogobuy 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 REINET INVESTMENTS with a short position of Cogobuy. Check out your portfolio center. Please also check ongoing floating volatility patterns of REINET INVESTMENTS and Cogobuy.
Diversification Opportunities for REINET INVESTMENTS and Cogobuy
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between REINET and Cogobuy is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding REINET INVESTMENTS SCA and Cogobuy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogobuy Group and REINET INVESTMENTS 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 REINET INVESTMENTS SCA are associated (or correlated) with Cogobuy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogobuy Group has no effect on the direction of REINET INVESTMENTS i.e., REINET INVESTMENTS and Cogobuy go up and down completely randomly.
Pair Corralation between REINET INVESTMENTS and Cogobuy
Assuming the 90 days horizon REINET INVESTMENTS is expected to generate 1.4 times less return on investment than Cogobuy. But when comparing it to its historical volatility, REINET INVESTMENTS SCA is 2.0 times less risky than Cogobuy. It trades about 0.04 of its potential returns per unit of risk. Cogobuy Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Cogobuy Group on August 27, 2024 and sell it today you would earn a total of 1.00 from holding Cogobuy Group or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REINET INVESTMENTS SCA vs. Cogobuy Group
Performance |
| Timeline |
| REINET INVESTMENTS SCA |
| Cogobuy Group |
REINET INVESTMENTS and Cogobuy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REINET INVESTMENTS and Cogobuy
The main advantage of trading using opposite REINET INVESTMENTS and Cogobuy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REINET INVESTMENTS position performs unexpectedly, Cogobuy 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 Cogobuy will offset losses from the drop in Cogobuy's long position.| REINET INVESTMENTS vs. LION ONE METALS | REINET INVESTMENTS vs. Sumitomo Rubber Industries | REINET INVESTMENTS vs. SANOK RUBBER ZY | REINET INVESTMENTS vs. ScanSource |
| Cogobuy vs. Chiba Bank | Cogobuy vs. REINET INVESTMENTS SCA | Cogobuy vs. PennantPark Investment | Cogobuy vs. MTI WIRELESS EDGE |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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