Correlation Between EOSDAC and Cookie

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

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

Diversification Opportunities for EOSDAC and Cookie

0.28

Correlation Coefficient

EOSDAC  Cookie

Modest diversification

The 3 months correlation between EOSDAC and Cookie is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding EOSDAC and Cookie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cookie and EOSDAC 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 EOSDAC are associated (or correlated) with Cookie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cookie has no effect on the direction of EOSDAC i.e., EOSDAC and Cookie go up and down completely randomly.

Pair Corralation between EOSDAC and Cookie

Assuming the 90 days trading horizon EOSDAC is expected to generate 1.15 times less return on investment than Cookie. But when comparing it to its historical volatility, EOSDAC is 2.52 times less risky than Cookie. It trades about 0.2 of its potential returns per unit of risk. Cookie is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  14.00  in Cookie on April 25, 2025 and sell it today you would earn a total of  5.00  from holding Cookie or generate 35.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

EOSDAC  vs.  Cookie

EOSDAC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EOSDAC are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, EOSDAC sustained solid returns over the last few months and may actually be approaching a breakup point.

Cookie

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cookie are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Cookie sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EOSDAC and Cookie

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

The idea behind EOSDAC and Cookie 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 Commodity Directory module to find actively traded commodities issued by global exchanges.