Correlation Between COSMO FIRST and NRB Industrial
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By analyzing existing cross correlation between COSMO FIRST LIMITED and NRB Industrial Bearings, you can compare the effects of market volatilities on COSMO FIRST and NRB Industrial 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 COSMO FIRST with a short position of NRB Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and NRB Industrial.
Diversification Opportunities for COSMO FIRST and NRB Industrial
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COSMO and NRB is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and NRB Industrial Bearings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRB Industrial Bearings and COSMO FIRST 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 COSMO FIRST LIMITED are associated (or correlated) with NRB Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRB Industrial Bearings has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and NRB Industrial go up and down completely randomly.
Pair Corralation between COSMO FIRST and NRB Industrial
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 2.16 times more return on investment than NRB Industrial. However, COSMO FIRST is 2.16 times more volatile than NRB Industrial Bearings. It trades about 0.38 of its potential returns per unit of risk. NRB Industrial Bearings is currently generating about -0.02 per unit of risk. If you would invest 74,165 in COSMO FIRST LIMITED on September 20, 2024 and sell it today you would earn a total of 26,695 from holding COSMO FIRST LIMITED or generate 35.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
COSMO FIRST LIMITED vs. NRB Industrial Bearings
Performance |
Timeline |
COSMO FIRST LIMITED |
NRB Industrial Bearings |
COSMO FIRST and NRB Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COSMO FIRST and NRB Industrial
The main advantage of trading using opposite COSMO FIRST and NRB Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, NRB Industrial 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 NRB Industrial will offset losses from the drop in NRB Industrial's long position.COSMO FIRST vs. Computer Age Management | COSMO FIRST vs. Nucleus Software Exports | COSMO FIRST vs. BF Investment Limited | COSMO FIRST vs. SIL Investments Limited |
NRB Industrial vs. Kingfa Science Technology | NRB Industrial vs. Rico Auto Industries | NRB Industrial vs. GACM Technologies Limited | NRB Industrial vs. COSMO FIRST 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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