Correlation Between Cohen Dev and Scope Metals
Can any of the company-specific risk be diversified away by investing in both Cohen Dev and Scope Metals 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 Cohen Dev and Scope Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Dev and Scope Metals Group, you can compare the effects of market volatilities on Cohen Dev and Scope Metals 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 Cohen Dev with a short position of Scope Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Dev and Scope Metals.
Diversification Opportunities for Cohen Dev and Scope Metals
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cohen and Scope is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Dev and Scope Metals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scope Metals Group and Cohen Dev 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 Cohen Dev are associated (or correlated) with Scope Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scope Metals Group has no effect on the direction of Cohen Dev i.e., Cohen Dev and Scope Metals go up and down completely randomly.
Pair Corralation between Cohen Dev and Scope Metals
Assuming the 90 days trading horizon Cohen Dev is expected to generate 0.96 times more return on investment than Scope Metals. However, Cohen Dev is 1.04 times less risky than Scope Metals. It trades about 0.14 of its potential returns per unit of risk. Scope Metals Group is currently generating about 0.02 per unit of risk. If you would invest 1,001,000 in Cohen Dev on February 4, 2024 and sell it today you would earn a total of 36,000 from holding Cohen Dev or generate 3.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cohen Dev vs. Scope Metals Group
Performance |
Timeline |
Cohen Dev |
Scope Metals Group |
Cohen Dev and Scope Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cohen Dev and Scope Metals
The main advantage of trading using opposite Cohen Dev and Scope Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Dev position performs unexpectedly, Scope Metals 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 Scope Metals will offset losses from the drop in Scope Metals' long position.Cohen Dev vs. Internet Gold Golden | Cohen Dev vs. Hiron Trade Investments Industrial | Cohen Dev vs. Israel Corp | Cohen Dev vs. Internet Gold |
Scope Metals vs. Delek Automotive Systems | Scope Metals vs. Kerur Holdings | Scope Metals vs. Neto ME Holdings | Scope Metals vs. Bank Leumi Le Israel |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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