Correlation Between Cosmos Group and Consumer Portfolio

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

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

Diversification Opportunities for Cosmos Group and Consumer Portfolio

-0.18

Correlation Coefficient

Cosmos Group  Consumer Portfolio

Good diversification

The 3 months correlation between Cosmos and Consumer is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Group Holdings and Consumer Portfolio Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Portfolio and Cosmos Group 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 Cosmos Group Holdings are associated (or correlated) with Consumer Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Portfolio has no effect on the direction of Cosmos Group i.e., Cosmos Group and Consumer Portfolio go up and down completely randomly.

Pair Corralation between Cosmos Group and Consumer Portfolio

Given the investment horizon of 90 days Cosmos Group Holdings is expected to generate 69.75 times more return on investment than Consumer Portfolio. However, Cosmos Group is 69.75 times more volatile than Consumer Portfolio Services. It trades about 0.19 of its potential returns per unit of risk. Consumer Portfolio Services is currently generating about -0.11 per unit of risk. If you would invest  0.00  in Cosmos Group Holdings on December 29, 2024 and sell it today you would earn a total of  0.01  from holding Cosmos Group Holdings or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Cosmos Group Holdings  vs.  Consumer Portfolio Services

Cosmos Group Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos Group Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Cosmos Group reported solid returns over the last few months and may actually be approaching a breakup point.

Consumer Portfolio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Consumer Portfolio Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cosmos Group and Consumer Portfolio

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

The idea behind Cosmos Group Holdings and Consumer Portfolio Services 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.