Correlation Between COSCO SHIPPING and Immunoprecise Antibodies

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

Diversification Opportunities for COSCO SHIPPING and Immunoprecise Antibodies

0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between COSCO and Immunoprecise is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING HOLDINGS and Immunoprecise Antibodies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunoprecise Antibodies and COSCO SHIPPING 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 COSCO SHIPPING HOLDINGS are associated (or correlated) with Immunoprecise Antibodies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunoprecise Antibodies has no effect on the direction of COSCO SHIPPING i.e., COSCO SHIPPING and Immunoprecise Antibodies go up and down completely randomly.

Pair Corralation between COSCO SHIPPING and Immunoprecise Antibodies

Assuming the 90 days trading horizon COSCO SHIPPING is expected to generate 2.3 times less return on investment than Immunoprecise Antibodies. But when comparing it to its historical volatility, COSCO SHIPPING HOLDINGS is 5.04 times less risky than Immunoprecise Antibodies. It trades about 0.11 of its potential returns per unit of risk. Immunoprecise Antibodies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  103.00  in Immunoprecise Antibodies on March 31, 2022 and sell it today you would earn a total of  281.00  from holding Immunoprecise Antibodies or generate 272.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy77.31%
ValuesDaily Returns

COSCO SHIPPING HOLDINGS  vs.  Immunoprecise Antibodies

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

COSCO Price Channel

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

Immunoprecise Price Channel

COSCO SHIPPING and Immunoprecise Antibodies Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with COSCO SHIPPING and Immunoprecise Antibodies

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

COSCO SHIPPING HOLDINGS

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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against COSCO SHIPPING as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. COSCO SHIPPING's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, COSCO SHIPPING's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to COSCO SHIPPING HOLDINGS.
The idea behind COSCO SHIPPING HOLDINGS and Immunoprecise Antibodies 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.

Immunoprecise Antibodies

Pair trading matchups for Immunoprecise Antibodies

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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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