Correlation Between Cosmos Group and OverActive Media

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

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

Diversification Opportunities for Cosmos Group and OverActive Media

-0.29

Correlation Coefficient

Cosmos Group  OverActive Media

Very good diversification

The 3 months correlation between Cosmos and OverActive is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Group Holdings and OverActive Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OverActive Media Corp and Cosmos Group 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 Cosmos Group Holdings are associated (or correlated) with OverActive Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OverActive Media Corp has no effect on the direction of Cosmos Group i.e., Cosmos Group and OverActive Media go up and down completely randomly.

Pair Corralation between Cosmos Group and OverActive Media

Given the investment horizon of 90 days Cosmos Group Holdings is expected to generate 24.63 times more return on investment than OverActive Media. However, Cosmos Group is 24.63 times more volatile than OverActive Media Corp. It trades about 0.19 of its potential returns per unit of risk. OverActive Media Corp is currently generating about 0.12 per unit of risk. If you would invest  0.01  in Cosmos Group Holdings on May 12, 2025 and sell it today you would lose (0.01) from holding Cosmos Group Holdings or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Cosmos Group Holdings  vs.  OverActive Media Corp

Cosmos Group Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos Group Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Cosmos Group reported solid returns over the last few months and may actually be approaching a breakup point.

OverActive Media Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in OverActive Media Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, OverActive Media reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cosmos Group and OverActive Media

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

The idea behind Cosmos Group Holdings and OverActive Media Corp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.