Correlation Between Trxade and Cowen

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

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

Diversification Opportunities for Trxade and Cowen

-0.59

Correlation Coefficient

Trxade  Cowen

Excellent diversification

The 3 months correlation between Trxade and Cowen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Trxade Group and Cowen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowen Group and Trxade 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 Trxade Group are associated (or correlated) with Cowen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowen Group has no effect on the direction of Trxade i.e., Trxade and Cowen go up and down completely randomly.

Pair Corralation between Trxade and Cowen

If you would invest  3,899  in Cowen Group on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Cowen Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Trxade Group  vs.  Cowen Group

Trxade Group

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Trxade Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain fundamental indicators, Trxade may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Cowen Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cowen Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Cowen is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Trxade and Cowen

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

The idea behind Trxade Group and Cowen Group 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.