Correlation Between Cosmos Health and World Oil
Can any of the company-specific risk be diversified away by investing in both Cosmos Health and World Oil 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 World Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos Health and World Oil Group, you can compare the effects of market volatilities on Cosmos Health and World Oil 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 World Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Health and World Oil.
Diversification Opportunities for Cosmos Health and World Oil
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cosmos and World is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Health and World Oil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Oil Group 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 World Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Oil Group has no effect on the direction of Cosmos Health i.e., Cosmos Health and World Oil go up and down completely randomly.
Pair Corralation between Cosmos Health and World Oil
Given the investment horizon of 90 days Cosmos Health is expected to generate 0.59 times more return on investment than World Oil. However, Cosmos Health is 1.69 times less risky than World Oil. It trades about 0.19 of its potential returns per unit of risk. World Oil Group is currently generating about -0.03 per unit of risk. If you would invest 46.00 in Cosmos Health on May 3, 2025 and sell it today you would earn a total of 38.99 from holding Cosmos Health or generate 84.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Cosmos Health vs. World Oil Group
Performance |
Timeline |
Cosmos Health |
World Oil Group |
Cosmos Health and World Oil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cosmos Health and World Oil
The main advantage of trading using opposite Cosmos Health and World Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Health position performs unexpectedly, World Oil 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 World Oil will offset losses from the drop in World Oil's long position.Cosmos Health vs. Cann American Corp | Cosmos Health vs. Shuttle Pharmaceuticals | Cosmos Health vs. Kala Pharmaceuticals | Cosmos Health vs. Genius Group |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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