Correlation Between COSCO SHIPPING and Pampa Energia

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

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

Diversification Opportunities for COSCO SHIPPING and Pampa Energia

0.38

Correlation Coefficient

COSCO SHIPPING  Pampa Energia

Weak diversification

The 3 months correlation between COSCO and Pampa is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING Development and Pampa Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energia SA and COSCO SHIPPING 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 SHIPPING Development are associated (or correlated) with Pampa Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energia SA has no effect on the direction of COSCO SHIPPING i.e., COSCO SHIPPING and Pampa Energia go up and down completely randomly.

Pair Corralation between COSCO SHIPPING and Pampa Energia

Assuming the 90 days horizon COSCO SHIPPING Development is expected to generate 3.86 times more return on investment than Pampa Energia. However, COSCO SHIPPING is 3.86 times more volatile than Pampa Energia SA. It trades about 0.15 of its potential returns per unit of risk. Pampa Energia SA is currently generating about -0.06 per unit of risk. If you would invest  11.00  in COSCO SHIPPING Development on May 17, 2025 and sell it today you would earn a total of  7.00  from holding COSCO SHIPPING Development or generate 63.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	74.19%
Values	Daily Returns

COSCO SHIPPING Development  vs.  Pampa Energia SA

COSCO SHIPPING Devel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in COSCO SHIPPING Development are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, COSCO SHIPPING reported solid returns over the last few months and may actually be approaching a breakup point.

Pampa Energia SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Pampa Energia SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with COSCO SHIPPING and Pampa Energia

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

The idea behind COSCO SHIPPING Development and Pampa Energia SA 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.