Correlation Between Cosmos and Automata

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cosmos and Automata 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 and Automata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos and Automata, you can compare the effects of market volatilities on Cosmos and Automata 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 with a short position of Automata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos and Automata.

Diversification Opportunities for Cosmos and Automata

0.02
  Correlation Coefficient

Significant diversification

The 3 months correlation between Cosmos and Automata is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and Automata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automata and Cosmos 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 are associated (or correlated) with Automata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automata has no effect on the direction of Cosmos i.e., Cosmos and Automata go up and down completely randomly.

Pair Corralation between Cosmos and Automata

Assuming the 90 days trading horizon Cosmos is expected to under-perform the Automata. But the crypto coin apears to be less risky and, when comparing its historical volatility, Cosmos is 16.79 times less risky than Automata. The crypto coin trades about -0.16 of its potential returns per unit of risk. The Automata is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Automata on April 2, 2022 and sell it today you would earn a total of  17.00  from holding Automata or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy55.04%
ValuesDaily Returns

Cosmos  vs.  Automata

 Performance (%) 
      Timeline 
Cosmos 
Cosmos Performance
0 of 100
Over the last 90 days Cosmos has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for Cosmos investors.

Cosmos Price Channel

Automata 
Automata Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Automata are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Automata sustained solid returns over the last few months and may actually be approaching a breakup point.

Automata Price Channel

Cosmos and Automata Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Cosmos and Automata

The main advantage of trading using opposite Cosmos and Automata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, Automata 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 Automata will offset losses from the drop in Automata's long position.
The idea behind Cosmos and Automata 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.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go