Correlation Between All Cosmos and Jourdeness

Can any of the company-specific risk be diversified away by investing in both All Cosmos and Jourdeness 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 All Cosmos and Jourdeness into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between All Cosmos Bio Tech and Jourdeness Group, you can compare the effects of market volatilities on All Cosmos and Jourdeness 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 All Cosmos with a short position of Jourdeness. Check out your portfolio center. Please also check ongoing floating volatility patterns of All Cosmos and Jourdeness.

Diversification Opportunities for All Cosmos and Jourdeness

-0.36

Correlation Coefficient

All Cosmos  Jourdeness

Very good diversification

The 3 months correlation between All and Jourdeness is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding All Cosmos Bio Tech and Jourdeness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jourdeness Group and All Cosmos 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 All Cosmos Bio Tech are associated (or correlated) with Jourdeness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jourdeness Group has no effect on the direction of All Cosmos i.e., All Cosmos and Jourdeness go up and down completely randomly.

Pair Corralation between All Cosmos and Jourdeness

Assuming the 90 days trading horizon All Cosmos Bio Tech is expected to under-perform the Jourdeness. But the stock apears to be less risky and, when comparing its historical volatility, All Cosmos Bio Tech is 1.08 times less risky than Jourdeness. The stock trades about -0.08 of its potential returns per unit of risk. The Jourdeness Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  4,525  in Jourdeness Group on December 23, 2024 and sell it today you would lose (120.00) from holding Jourdeness Group or give up 2.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

All Cosmos Bio Tech  vs.  Jourdeness Group

All Cosmos Bio

Risk-Adjusted Performance

Very Weak

Over the last 90 days All Cosmos Bio Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, All Cosmos is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Jourdeness Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jourdeness Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Jourdeness is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with All Cosmos and Jourdeness

The main advantage of trading using opposite All Cosmos and Jourdeness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All Cosmos position performs unexpectedly, Jourdeness 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 Jourdeness will offset losses from the drop in Jourdeness' long position.

The idea behind All Cosmos Bio Tech and Jourdeness Group 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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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.