Correlation Between Cosmos Health and Genius

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

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

Diversification Opportunities for Cosmos Health and Genius

0.73

Correlation Coefficient

Cosmos Health  Genius

Poor diversification

The 3 months correlation between Cosmos and Genius is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Health and Genius Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Group and Cosmos Health 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 Health are associated (or correlated) with Genius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Group has no effect on the direction of Cosmos Health i.e., Cosmos Health and Genius go up and down completely randomly.

Pair Corralation between Cosmos Health and Genius

Given the investment horizon of 90 days Cosmos Health is expected to generate 0.6 times more return on investment than Genius. However, Cosmos Health is 1.66 times less risky than Genius. It trades about -0.07 of its potential returns per unit of risk. Genius Group is currently generating about -0.12 per unit of risk. If you would invest  67.00  in Cosmos Health on December 28, 2024 and sell it today you would lose (19.00) from holding Cosmos Health or give up 28.36% of portfolio value over 90 days.

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

Cosmos Health  vs.  Genius Group

Cosmos Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cosmos Health 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Genius Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genius Group 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 Health and Genius

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

The idea behind Cosmos Health and Genius 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.