Correlation Between Consumer Automotive and COSCO SHIPPING

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

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

Diversification Opportunities for Consumer Automotive and COSCO SHIPPING

0.0

Correlation Coefficient

Consumer Automotive  COSCO SHIPPING

Pay attention - limited upside

The 3 months correlation between Consumer and COSCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Automotive Finance and COSCO SHIPPING Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Devel and Consumer Automotive 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 Consumer Automotive Finance are associated (or correlated) with COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Devel has no effect on the direction of Consumer Automotive i.e., Consumer Automotive and COSCO SHIPPING go up and down completely randomly.

Pair Corralation between Consumer Automotive and COSCO SHIPPING

If you would invest  11.00  in COSCO SHIPPING Development on May 2, 2025 and sell it today you would earn a total of  4.00  from holding COSCO SHIPPING Development or generate 36.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	50.82%
Values	Daily Returns

Consumer Automotive Finance  vs.  COSCO SHIPPING Development

Consumer Automotive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Consumer Automotive Finance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Consumer Automotive is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with Consumer Automotive and COSCO SHIPPING

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

The idea behind Consumer Automotive Finance and COSCO SHIPPING Development 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.