Correlation Between Cosmos Health and Sobr Safe

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

By analyzing existing cross correlation between Cosmos Health and Sobr Safe, you can compare the effects of market volatilities on Cosmos Health and Sobr Safe 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 Sobr Safe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Health and Sobr Safe.

Diversification Opportunities for Cosmos Health and Sobr Safe

0.33

Correlation Coefficient

Cosmos Health  Sobr Safe

Weak diversification

The 3 months correlation between Cosmos and Sobr is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Health and Sobr Safe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobr Safe 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 Sobr Safe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobr Safe has no effect on the direction of Cosmos Health i.e., Cosmos Health and Sobr Safe go up and down completely randomly.

Pair Corralation between Cosmos Health and Sobr Safe

Given the investment horizon of 90 days Cosmos Health is expected to generate 1.88 times more return on investment than Sobr Safe. However, Cosmos Health is 1.88 times more volatile than Sobr Safe. It trades about 0.02 of its potential returns per unit of risk. Sobr Safe is currently generating about -0.04 per unit of risk. If you would invest  90.00  in Cosmos Health on August 3, 2025 and sell it today you would lose (9.00) from holding Cosmos Health or give up 10.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cosmos Health  vs.  Sobr Safe

Cosmos Health

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos Health are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Cosmos Health may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Sobr Safe

Risk-Adjusted Performance

Weakest

Over the last 90 days Sobr Safe has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's fundamental drivers remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Cosmos Health and Sobr Safe

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

The idea behind Cosmos Health and Sobr Safe 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 CEOs Directory module to screen CEOs from public companies around the world.