Correlation Between New Amer and Cosmos Group

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Can any of the company-specific risk be diversified away by investing in both New Amer and Cosmos Group 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 New Amer and Cosmos Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Amer Energy and Cosmos Group Holdings, you can compare the effects of market volatilities on New Amer and Cosmos Group 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 New Amer with a short position of Cosmos Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Amer and Cosmos Group.

Diversification Opportunities for New Amer and Cosmos Group

NewCosmosDiversified AwayNewCosmosDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between New and Cosmos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Amer Energy and Cosmos Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Group Holdings and New Amer 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 New Amer Energy are associated (or correlated) with Cosmos Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Group Holdings has no effect on the direction of New Amer i.e., New Amer and Cosmos Group go up and down completely randomly.

Pair Corralation between New Amer and Cosmos Group

If you would invest  0.01  in Cosmos Group Holdings on November 18, 2024 and sell it today you would earn a total of  0.00  from holding Cosmos Group Holdings or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

New Amer Energy  vs.  Cosmos Group Holdings

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 20406080100
JavaScript chart by amCharts 3.21.15NECA COSG
       Timeline  
New Amer Energy 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days New Amer Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, New Amer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Cosmos Group Holdings 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos Group Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Cosmos Group reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb

New Amer and Cosmos Group Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.0020.0040.0060.0080.010
JavaScript chart by amCharts 3.21.15NECA COSG
       Returns  

Pair Trading with New Amer and Cosmos Group

The main advantage of trading using opposite New Amer and Cosmos Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Amer position performs unexpectedly, Cosmos Group 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 Cosmos Group will offset losses from the drop in Cosmos Group's long position.
The idea behind New Amer Energy and Cosmos Group Holdings 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 CEOs Directory module to screen CEOs from public companies around the world.

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