Correlation Between Cohen Dev and Equital
Can any of the company-specific risk be diversified away by investing in both Cohen Dev and Equital 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 Cohen Dev and Equital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Dev and Equital, you can compare the effects of market volatilities on Cohen Dev and Equital 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 Cohen Dev with a short position of Equital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Dev and Equital.
Diversification Opportunities for Cohen Dev and Equital
Significant diversification
The 3 months correlation between Cohen and Equital is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Dev and Equital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equital and Cohen Dev 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 Cohen Dev are associated (or correlated) with Equital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equital has no effect on the direction of Cohen Dev i.e., Cohen Dev and Equital go up and down completely randomly.
Pair Corralation between Cohen Dev and Equital
Assuming the 90 days trading horizon Cohen Dev is expected to generate 0.84 times more return on investment than Equital. However, Cohen Dev is 1.19 times less risky than Equital. It trades about 0.04 of its potential returns per unit of risk. Equital is currently generating about 0.0 per unit of risk. If you would invest 801,763 in Cohen Dev on January 26, 2024 and sell it today you would earn a total of 288,237 from holding Cohen Dev or generate 35.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Dev vs. Equital
Performance |
| Timeline |
| Cohen Dev |
| Equital |
Cohen Dev and Equital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Dev and Equital
The main advantage of trading using opposite Cohen Dev and Equital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Dev position performs unexpectedly, Equital 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 Equital will offset losses from the drop in Equital's long position.| Cohen Dev vs. Atreyu Capital Markets | Cohen Dev vs. IBI Inv House | Cohen Dev vs. Delek Automotive Systems | Cohen Dev vs. Scope Metals Group |
| Equital vs. Airport City | Equital vs. Naphtha | Equital vs. Menora Miv Hld | Equital vs. Delek Automotive Systems |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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