Correlation Between CurveBeam and COG Financial
Can any of the company-specific risk be diversified away by investing in both CurveBeam and COG Financial 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 CurveBeam and COG Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CurveBeam AI Limited and COG Financial Services, you can compare the effects of market volatilities on CurveBeam and COG Financial 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 CurveBeam with a short position of COG Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurveBeam and COG Financial.
Diversification Opportunities for CurveBeam and COG Financial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CurveBeam and COG is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CurveBeam AI Limited and COG Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COG Financial Services and CurveBeam 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 CurveBeam AI Limited are associated (or correlated) with COG Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COG Financial Services has no effect on the direction of CurveBeam i.e., CurveBeam and COG Financial go up and down completely randomly.
Pair Corralation between CurveBeam and COG Financial
Assuming the 90 days trading horizon CurveBeam is expected to generate 1.23 times less return on investment than COG Financial. In addition to that, CurveBeam is 4.24 times more volatile than COG Financial Services. It trades about 0.04 of its total potential returns per unit of risk. COG Financial Services is currently generating about 0.23 per unit of volatility. If you would invest 91.00 in COG Financial Services on October 11, 2024 and sell it today you would earn a total of 10.00 from holding COG Financial Services or generate 10.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.0% |
Values | Daily Returns |
CurveBeam AI Limited vs. COG Financial Services
Performance |
Timeline |
CurveBeam AI Limited |
COG Financial Services |
CurveBeam and COG Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CurveBeam and COG Financial
The main advantage of trading using opposite CurveBeam and COG Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurveBeam position performs unexpectedly, COG Financial 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 COG Financial will offset losses from the drop in COG Financial's long position.CurveBeam vs. COG Financial Services | CurveBeam vs. BSP Financial Group | CurveBeam vs. ARN Media Limited | CurveBeam vs. Perpetual Credit Income |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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