Correlation Between Balai Ni and Cosco Capital

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

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

Diversification Opportunities for Balai Ni and Cosco Capital

0.39

Correlation Coefficient

Balai Ni  Cosco Capital

Weak diversification

The 3 months correlation between Balai and Cosco is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Balai Ni Fruitas and Cosco Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosco Capital and Balai Ni 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 Balai Ni Fruitas 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 Balai Ni i.e., Balai Ni and Cosco Capital go up and down completely randomly.

Pair Corralation between Balai Ni and Cosco Capital

Assuming the 90 days trading horizon Balai Ni is expected to generate 1.62 times less return on investment than Cosco Capital. In addition to that, Balai Ni is 2.38 times more volatile than Cosco Capital. It trades about 0.08 of its total potential returns per unit of risk. Cosco Capital is currently generating about 0.3 per unit of volatility. If you would invest  548.00  in Cosco Capital on April 21, 2025 and sell it today you would earn a total of  160.00  from holding Cosco Capital or generate 29.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	82.26%
Values	Daily Returns

Balai Ni Fruitas  vs.  Cosco Capital

Balai Ni Fruitas

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Balai Ni Fruitas are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak essential indicators, Balai Ni reported solid returns over the last few months and may actually be approaching a breakup point.

Cosco Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cosco Capital are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Cosco Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Balai Ni and Cosco Capital

The main advantage of trading using opposite Balai Ni and Cosco Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balai Ni 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 Balai Ni Fruitas 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .