Correlation Between Cosmos and VEST
Can any of the company-specific risk be diversified away by investing in both Cosmos and VEST 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 Cosmos and VEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos and VEST, you can compare the effects of market volatilities on Cosmos and VEST 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 Cosmos with a short position of VEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos and VEST.
Diversification Opportunities for Cosmos and VEST
Excellent diversification
The 3 months correlation between Cosmos and VEST is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and VEST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEST and Cosmos 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 Cosmos are associated (or correlated) with VEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEST has no effect on the direction of Cosmos i.e., Cosmos and VEST go up and down completely randomly.
Pair Corralation between Cosmos and VEST
If you would invest 1,141 in Cosmos on December 29, 2023 and sell it today you would earn a total of 92.00 from holding Cosmos or generate 8.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Cosmos vs. VEST
Performance |
Timeline |
Cosmos |
VEST |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Cosmos and VEST Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cosmos and VEST
The main advantage of trading using opposite Cosmos and VEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, VEST 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 VEST will offset losses from the drop in VEST's long position.The idea behind Cosmos and VEST 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.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |