Correlation Between United Breweries and COSMO FIRST
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By analyzing existing cross correlation between United Breweries Limited and COSMO FIRST LIMITED, you can compare the effects of market volatilities on United Breweries 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 United Breweries with a short position of COSMO FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Breweries and COSMO FIRST.
Diversification Opportunities for United Breweries and COSMO FIRST
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between United and COSMO is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding United Breweries Limited 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 United Breweries 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 United Breweries 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 United Breweries i.e., United Breweries and COSMO FIRST go up and down completely randomly.
Pair Corralation between United Breweries and COSMO FIRST
Assuming the 90 days trading horizon United Breweries is expected to generate 2.57 times less return on investment than COSMO FIRST. But when comparing it to its historical volatility, United Breweries Limited is 3.47 times less risky than COSMO FIRST. It trades about 0.19 of its potential returns per unit of risk. COSMO FIRST LIMITED is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 88,450 in COSMO FIRST LIMITED on October 10, 2024 and sell it today you would earn a total of 11,365 from holding COSMO FIRST LIMITED or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
United Breweries Limited vs. COSMO FIRST LIMITED
Performance |
| Timeline |
| United Breweries |
| COSMO FIRST LIMITED |
United Breweries and COSMO FIRST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Breweries and COSMO FIRST
The main advantage of trading using opposite United Breweries and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Breweries 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.| United Breweries vs. LLOYDS METALS AND | United Breweries vs. Jindal Poly Investment | United Breweries vs. BF Investment Limited | United Breweries vs. Indian Metals Ferro |
| COSMO FIRST vs. GM Breweries Limited | COSMO FIRST vs. ADF Foods Limited | COSMO FIRST vs. Foods Inns Limited | COSMO FIRST vs. Sanginita Chemicals Limited |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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