Correlation Between COSMO FIRST and GM Breweries
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By analyzing existing cross correlation between COSMO FIRST LIMITED and GM Breweries Limited, you can compare the effects of market volatilities on COSMO FIRST and GM Breweries 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 COSMO FIRST with a short position of GM Breweries. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and GM Breweries.
Diversification Opportunities for COSMO FIRST and GM Breweries
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COSMO and GMBREW is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and GM Breweries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GM Breweries Limited and COSMO FIRST 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 COSMO FIRST LIMITED are associated (or correlated) with GM Breweries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GM Breweries Limited has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and GM Breweries go up and down completely randomly.
Pair Corralation between COSMO FIRST and GM Breweries
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 1.27 times more return on investment than GM Breweries. However, COSMO FIRST is 1.27 times more volatile than GM Breweries Limited. It trades about 0.11 of its potential returns per unit of risk. GM Breweries Limited is currently generating about -0.09 per unit of risk. If you would invest 74,020 in COSMO FIRST LIMITED on September 24, 2024 and sell it today you would earn a total of 14,750 from holding COSMO FIRST LIMITED or generate 19.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
COSMO FIRST LIMITED vs. GM Breweries Limited
Performance |
Timeline |
COSMO FIRST LIMITED |
GM Breweries Limited |
COSMO FIRST and GM Breweries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COSMO FIRST and GM Breweries
The main advantage of trading using opposite COSMO FIRST and GM Breweries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, GM Breweries 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 GM Breweries will offset losses from the drop in GM Breweries' long position.COSMO FIRST vs. Kohinoor Foods Limited | COSMO FIRST vs. Action Construction Equipment | COSMO FIRST vs. LT Foods Limited | COSMO FIRST vs. Shyam Metalics and |
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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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