Correlation Between OKB and Cosmos

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

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

Diversification Opportunities for OKB and Cosmos

-0.04

Correlation Coefficient

OKB  Cosmos

Good diversification

The 3 months correlation between OKB and Cosmos is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding OKB and Cosmos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos and OKB 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 OKB are associated (or correlated) with Cosmos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos has no effect on the direction of OKB i.e., OKB and Cosmos go up and down completely randomly.

Pair Corralation between OKB and Cosmos

Assuming the 90 days trading horizon OKB is expected to generate 4.06 times more return on investment than Cosmos. However, OKB is 4.06 times more volatile than Cosmos. It trades about 0.16 of its potential returns per unit of risk. Cosmos is currently generating about -0.09 per unit of risk. If you would invest  4,524  in OKB on August 4, 2025 and sell it today you would earn a total of  9,908  from holding OKB or generate 219.01% return on investment over 90 days.

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

OKB  vs.  Cosmos

OKB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in OKB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, OKB exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cosmos

Risk-Adjusted Performance

Weakest

Over the last 90 days Cosmos has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for Cosmos shareholders.

Pair Trading with OKB and Cosmos

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

The idea behind OKB and Cosmos 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..