Correlation Between COG Financial and CurveBeam

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

By analyzing existing cross correlation between COG Financial Services and CurveBeam AI Limited, you can compare the effects of market volatilities on COG Financial and CurveBeam 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 COG Financial with a short position of CurveBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of COG Financial and CurveBeam.

Diversification Opportunities for COG Financial and CurveBeam

0.36

Correlation Coefficient

COG Financial  CurveBeam

Weak diversification

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

Pair Corralation between COG Financial and CurveBeam

Assuming the 90 days trading horizon COG Financial Services is expected to under-perform the CurveBeam. But the stock apears to be less risky and, when comparing its historical volatility, COG Financial Services is 3.99 times less risky than CurveBeam. The stock trades about -0.01 of its potential returns per unit of risk. The CurveBeam AI Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  13.00  in CurveBeam AI Limited on October 26, 2024 and sell it today you would lose (2.00) from holding CurveBeam AI Limited or give up 15.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

COG Financial Services  vs.  CurveBeam AI Limited

COG Financial Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days COG Financial Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, COG Financial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

CurveBeam AI Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CurveBeam AI Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, CurveBeam is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with COG Financial and CurveBeam

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

The idea behind COG Financial Services and CurveBeam AI 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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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.