Correlation Between AllDay Marts and Cosco Capital

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

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

Diversification Opportunities for AllDay Marts and Cosco Capital

-0.35

Correlation Coefficient

AllDay Marts  Cosco Capital

Very good diversification

The 3 months correlation between AllDay and Cosco is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding AllDay Marts and Cosco Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosco Capital and AllDay Marts 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 AllDay Marts are associated (or correlated) with Cosco Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosco Capital has no effect on the direction of AllDay Marts i.e., AllDay Marts and Cosco Capital go up and down completely randomly.

Pair Corralation between AllDay Marts and Cosco Capital

Assuming the 90 days trading horizon AllDay Marts is expected to under-perform the Cosco Capital. In addition to that, AllDay Marts is 1.43 times more volatile than Cosco Capital. It trades about -0.03 of its total potential returns per unit of risk. Cosco Capital is currently generating about 0.25 per unit of volatility. If you would invest  570.00  in Cosco Capital on April 24, 2025 and sell it today you would earn a total of  130.00  from holding Cosco Capital or generate 22.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

AllDay Marts  vs.  Cosco Capital

AllDay Marts

Risk-Adjusted Performance

Very Weak

Over the last 90 days AllDay Marts has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, AllDay Marts is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Cosco Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cosco Capital are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Cosco Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AllDay Marts and Cosco Capital

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

The idea behind AllDay Marts and Cosco Capital 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.