Correlation Between Cosmos Health and COMSovereign Holding

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

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

Diversification Opportunities for Cosmos Health and COMSovereign Holding

-0.63

Correlation Coefficient

Cosmos Health  COMSovereign Holding

Excellent diversification

The 3 months correlation between Cosmos and COMSovereign is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Health and COMSovereign Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMSovereign Holding Corp and Cosmos Health 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 Health are associated (or correlated) with COMSovereign Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMSovereign Holding Corp has no effect on the direction of Cosmos Health i.e., Cosmos Health and COMSovereign Holding go up and down completely randomly.

Pair Corralation between Cosmos Health and COMSovereign Holding

Given the investment horizon of 90 days Cosmos Health is expected to generate 1.43 times less return on investment than COMSovereign Holding. But when comparing it to its historical volatility, Cosmos Health is 6.49 times less risky than COMSovereign Holding. It trades about 0.42 of its potential returns per unit of risk. COMSovereign Holding Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  0.12  in COMSovereign Holding Corp on July 9, 2025 and sell it today you would lose (0.10) from holding COMSovereign Holding Corp or give up 83.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Cosmos Health  vs.  COMSovereign Holding Corp

Cosmos Health

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos Health are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Cosmos Health displayed solid returns over the last few months and may actually be approaching a breakup point.

COMSovereign Holding Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in COMSovereign Holding Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, COMSovereign Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cosmos Health and COMSovereign Holding

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

The idea behind Cosmos Health and COMSovereign Holding 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.