Correlation Between COSCO SHIPPING and COSCO SHIPPING

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

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

Diversification Opportunities for COSCO SHIPPING and COSCO SHIPPING

0.85

Correlation Coefficient

COSCO SHIPPING  COSCO SHIPPING

Very poor diversification

The 3 months correlation between COSCO and COSCO is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING Holdings and COSCO SHIPPING Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Holdings and COSCO SHIPPING 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 COSCO SHIPPING Holdings are associated (or correlated) with COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Holdings has no effect on the direction of COSCO SHIPPING i.e., COSCO SHIPPING and COSCO SHIPPING go up and down completely randomly.

Pair Corralation between COSCO SHIPPING and COSCO SHIPPING

Assuming the 90 days horizon COSCO SHIPPING Holdings is expected to under-perform the COSCO SHIPPING. In addition to that, COSCO SHIPPING is 1.6 times more volatile than COSCO SHIPPING Holdings. It trades about -0.15 of its total potential returns per unit of risk. COSCO SHIPPING Holdings is currently generating about -0.21 per unit of volatility. If you would invest  160.00  in COSCO SHIPPING Holdings on September 3, 2024 and sell it today you would lose (16.00) from holding COSCO SHIPPING Holdings or give up 10.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

COSCO SHIPPING Holdings  vs.  COSCO SHIPPING Holdings

COSCO SHIPPING Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in COSCO SHIPPING Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, COSCO SHIPPING may actually be approaching a critical reversion point that can send shares even higher in January 2025.

COSCO SHIPPING Holdings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in COSCO SHIPPING Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, COSCO SHIPPING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COSCO SHIPPING and COSCO SHIPPING

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

The idea behind COSCO SHIPPING Holdings and COSCO SHIPPING 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.