Correlation Between CSE Global and Helios

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

By analyzing existing cross correlation between CSE Global Limited and Helios and Matheson, you can compare the effects of market volatilities on CSE Global and Helios 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 CSE Global with a short position of Helios. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSE Global and Helios.

Diversification Opportunities for CSE Global and Helios

0.06

Correlation Coefficient

CSE Global  Helios

Significant diversification

The 3 months correlation between CSE and Helios is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CSE Global Limited and Helios and Matheson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios and Matheson and CSE Global 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 CSE Global Limited are associated (or correlated) with Helios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios and Matheson has no effect on the direction of CSE Global i.e., CSE Global and Helios go up and down completely randomly.

Pair Corralation between CSE Global and Helios

If you would invest  30.00  in CSE Global Limited on October 7, 2024 and sell it today you would earn a total of  2.00  from holding CSE Global Limited or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	2.44%
Values	Daily Returns

CSE Global Limited  vs.  Helios and Matheson

CSE Global Limited

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CSE Global Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward-looking indicators, CSE Global may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Helios and Matheson

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Helios and Matheson has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Helios is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CSE Global and Helios

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

The idea behind CSE Global Limited and Helios and Matheson 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.