Correlation Between Keepers Holdings and Cosco Capital

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

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

Diversification Opportunities for Keepers Holdings and Cosco Capital

0.44

Correlation Coefficient

Keepers Holdings  Cosco Capital

Very weak diversification

The 3 months correlation between Keepers and Cosco is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Keepers Holdings and Cosco Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosco Capital and Keepers Holdings 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 Keepers Holdings 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 Keepers Holdings i.e., Keepers Holdings and Cosco Capital go up and down completely randomly.

Pair Corralation between Keepers Holdings and Cosco Capital

Assuming the 90 days trading horizon Keepers Holdings is expected to generate 13.82 times less return on investment than Cosco Capital. In addition to that, Keepers Holdings is 1.26 times more volatile than Cosco Capital. It trades about 0.02 of its total potential returns per unit of risk. Cosco Capital is currently generating about 0.28 per unit of volatility. If you would invest  564.00  in Cosco Capital on April 22, 2025 and sell it today you would earn a total of  144.00  from holding Cosco Capital or generate 25.53% return on investment over 90 days.

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

Keepers Holdings  vs.  Cosco Capital

Keepers Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Keepers Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Keepers Holdings is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Cosco Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cosco Capital are ranked lower than 21 (%) 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 Keepers Holdings and Cosco Capital

The main advantage of trading using opposite Keepers Holdings and Cosco Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keepers Holdings 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 Keepers Holdings 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..