Correlation Between SiteOne Landscape and COSCO SHIPPING

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

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

Diversification Opportunities for SiteOne Landscape and COSCO SHIPPING

-0.05

Correlation Coefficient

SiteOne Landscape  COSCO SHIPPING

Good diversification

The 3 months correlation between SiteOne and COSCO is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SiteOne Landscape Supply 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 SiteOne Landscape 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 SiteOne Landscape Supply 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 SiteOne Landscape i.e., SiteOne Landscape and COSCO SHIPPING go up and down completely randomly.

Pair Corralation between SiteOne Landscape and COSCO SHIPPING

Given the investment horizon of 90 days SiteOne Landscape is expected to generate 6.84 times less return on investment than COSCO SHIPPING. But when comparing it to its historical volatility, SiteOne Landscape Supply is 3.23 times less risky than COSCO SHIPPING. It trades about 0.01 of its potential returns per unit of risk. COSCO SHIPPING Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  15.00  in COSCO SHIPPING Development on July 8, 2025 and sell it today you would lose (2.00) from holding COSCO SHIPPING Development or give up 13.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

SiteOne Landscape Supply  vs.  COSCO SHIPPING Development

SiteOne Landscape Supply

Risk-Adjusted Performance

Weak

Over the last 90 days SiteOne Landscape Supply has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SiteOne Landscape is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

COSCO SHIPPING Devel

Risk-Adjusted Performance

Weak

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

Pair Trading with SiteOne Landscape and COSCO SHIPPING

The main advantage of trading using opposite SiteOne Landscape and COSCO SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiteOne Landscape 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 SiteOne Landscape Supply 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.