Correlation Between Cosco Capital and Dito CME

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

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

Diversification Opportunities for Cosco Capital and Dito CME

-0.93

Correlation Coefficient

Cosco Capital  Dito CME

Pay attention - limited upside

The 3 months correlation between Cosco and Dito is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cosco Capital and Dito CME Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dito CME Holdings 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 Dito CME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dito CME Holdings has no effect on the direction of Cosco Capital i.e., Cosco Capital and Dito CME go up and down completely randomly.

Pair Corralation between Cosco Capital and Dito CME

Assuming the 90 days trading horizon Cosco Capital is expected to generate 0.57 times more return on investment than Dito CME. However, Cosco Capital is 1.77 times less risky than Dito CME. It trades about 0.25 of its potential returns per unit of risk. Dito CME Holdings is currently generating about -0.22 per unit of risk. 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	Significant
Accuracy	100.0%
Values	Daily Returns

Cosco Capital  vs.  Dito CME Holdings

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.

Dito CME Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dito CME Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cosco Capital and Dito CME

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

The idea behind Cosco Capital and Dito CME Holdings 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.