Correlation Between Costco Wholesale and Reliq Health

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

Diversification Opportunities for Costco Wholesale and Reliq Health

CostcoReliqDiversified AwayCostcoReliqDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Costco Wholesale and Reliq Health

If you would invest  4,218  in Costco Wholesale Corp on September 16, 2024 and sell it today you would earn a total of  366.00  from holding Costco Wholesale Corp or generate 8.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Costco Wholesale Corp  vs.  Reliq Health Technologies

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -4-202468
JavaScript chart by amCharts 3.21.15COST RHT
       Timeline  
Costco Wholesale Corp 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Costco Wholesale Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Costco Wholesale may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec414243444546
Reliq Health Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Reliq Health Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Reliq Health is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.220.225

Costco Wholesale and Reliq Health Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.2-2.39-1.59-0.790.00.821.672.523.374.22 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15COST RHT
       Returns  

Pair Trading with Costco Wholesale and Reliq Health

The main advantage of trading using opposite Costco Wholesale and Reliq Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costco Wholesale position performs unexpectedly, Reliq Health 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 Reliq Health will offset losses from the drop in Reliq Health's long position.
The idea behind Costco Wholesale Corp and Reliq Health Technologies 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.

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