Correlation Between CurveBeam and COG Financial

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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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.0%
ValuesDaily Returns

CurveBeam AI Limited  vs.  COG Financial Services

 Performance 
       Timeline  
CurveBeam AI Limited 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in CurveBeam AI Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, CurveBeam unveiled solid returns over the last few months and may actually be approaching a breakup point.
COG Financial Services 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in COG Financial Services are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, COG Financial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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.
The idea behind CurveBeam AI Limited and COG Financial 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.
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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