Correlation Between Cosco Capital and AgriNurture

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

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

Diversification Opportunities for Cosco Capital and AgriNurture

-0.37

Correlation Coefficient

Cosco Capital  AgriNurture

Very good diversification

The 3 months correlation between Cosco and AgriNurture is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cosco Capital and AgriNurture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriNurture 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 AgriNurture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriNurture has no effect on the direction of Cosco Capital i.e., Cosco Capital and AgriNurture go up and down completely randomly.

Pair Corralation between Cosco Capital and AgriNurture

Assuming the 90 days trading horizon Cosco Capital is expected to generate 0.74 times more return on investment than AgriNurture. However, Cosco Capital is 1.35 times less risky than AgriNurture. It trades about 0.3 of its potential returns per unit of risk. AgriNurture is currently generating about -0.07 per unit of risk. 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 Against
Strength	Insignificant
Accuracy	87.1%
Values	Daily Returns

Cosco Capital  vs.  AgriNurture

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.

AgriNurture

Risk-Adjusted Performance

Very Weak

Over the last 90 days AgriNurture has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Cosco Capital and AgriNurture

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

The idea behind Cosco Capital and AgriNurture 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 CEOs Directory module to screen CEOs from public companies around the world.