Correlation Between Coda Octopus and Celo

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

Diversification Opportunities for Coda Octopus and Celo

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Coda Octopus and Celo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Coda Octopus Group and Celo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celo and Coda Octopus 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 Coda Octopus Group are associated (or correlated) with Celo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celo has no effect on the direction of Coda Octopus i.e., Coda Octopus and Celo go up and down completely randomly.

Pair Corralation between Coda Octopus and Celo

Given the investment horizon of 90 days Coda Octopus Group is expected to generate 0.47 times more return on investment than Celo. However, Coda Octopus Group is 2.11 times less risky than Celo. It trades about -0.01 of its potential returns per unit of risk. Celo is currently generating about -0.08 per unit of risk. If you would invest  799.00  in Coda Octopus Group on September 4, 2022 and sell it today you would lose (155.00)  from holding Coda Octopus Group or give up 19.4% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy96.9%
ValuesDaily Returns

Coda Octopus Group  vs.  Celo

 Performance (%) 
       Timeline  
Coda Octopus Group 
Coda Octopus Performance
15 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Coda Octopus Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Coda Octopus sustained solid returns over the last few months and may actually be approaching a breakup point.

Coda Octopus Price Channel

Celo 
Celo Performance
0 of 100
Over the last 90 days Celo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Crypto's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Celo investors.

Celo Price Channel

Coda Octopus and Celo Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Coda Octopus and Celo

The main advantage of trading using opposite Coda Octopus and Celo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coda Octopus position performs unexpectedly, Celo 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 Celo will offset losses from the drop in Celo's long position.
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The idea behind Coda Octopus Group and Celo 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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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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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