Correlation Between Cosmos and SwissBorg

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

Diversification Opportunities for Cosmos and SwissBorg

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Cosmos and SwissBorg is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and SwissBorg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SwissBorg 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 SwissBorg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SwissBorg has no effect on the direction of Cosmos i.e., Cosmos and SwissBorg go up and down completely randomly.

Pair Corralation between Cosmos and SwissBorg

Assuming the 90 days trading horizon Cosmos is expected to under-perform the SwissBorg. In addition to that, Cosmos is 1.83 times more volatile than SwissBorg. It trades about -0.07 of its total potential returns per unit of risk. SwissBorg is currently generating about -0.11 per unit of volatility. If you would invest  65.00  in SwissBorg on February 19, 2022 and sell it today you would lose (36.00)  from holding SwissBorg or give up 55.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy99.34%
ValuesDaily Returns

Cosmos  vs.  SwissBorg

 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 June 2022. The current disturbance may also be a sign of long term up-swing for Cosmos investors.

Cosmos Price Channel

SwissBorg 
SwissBorg Performance
0 of 100
Over the last 90 days SwissBorg 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 June 2022. The current disturbance may also be a sign of long term up-swing for SwissBorg investors.

SwissBorg Price Channel

Cosmos and SwissBorg Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Cosmos and SwissBorg

The main advantage of trading using opposite Cosmos and SwissBorg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, SwissBorg 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 SwissBorg will offset losses from the drop in SwissBorg's long position.
The idea behind Cosmos and SwissBorg 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
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
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go