Correlation Between Cosco Capital and AllDay Marts

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

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

Diversification Opportunities for Cosco Capital and AllDay Marts

-0.23

Correlation Coefficient

Cosco Capital  AllDay Marts

Very good diversification

The 3 months correlation between Cosco and AllDay is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cosco Capital and AllDay Marts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllDay Marts and Cosco Capital 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 Cosco Capital are associated (or correlated) with AllDay Marts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllDay Marts has no effect on the direction of Cosco Capital i.e., Cosco Capital and AllDay Marts go up and down completely randomly.

Pair Corralation between Cosco Capital and AllDay Marts

Assuming the 90 days trading horizon Cosco Capital is expected to generate 0.7 times more return on investment than AllDay Marts. However, Cosco Capital is 1.42 times less risky than AllDay Marts. It trades about 0.26 of its potential returns per unit of risk. AllDay Marts is currently generating about -0.05 per unit of risk. If you would invest  572.00  in Cosco Capital on April 23, 2025 and sell it today you would earn a total of  135.00  from holding Cosco Capital or generate 23.6% return on investment over 90 days.

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

Cosco Capital  vs.  AllDay Marts

Cosco Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cosco Capital are ranked lower than 20 (%) 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.

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 latest weak performance, the Stock's essential indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Cosco Capital and AllDay Marts

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

The idea behind Cosco Capital and AllDay Marts 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.