Correlation Between Industrial Investment and COSMO FIRST

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

Diversification Opportunities for Industrial Investment and COSMO FIRST

0.31
  Correlation Coefficient

Weak diversification

The 3 months correlation between Industrial and COSMO is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Investment Trust and COSMO FIRST LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMO FIRST LIMITED and Industrial Investment 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 Industrial Investment Trust are associated (or correlated) with COSMO FIRST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMO FIRST LIMITED has no effect on the direction of Industrial Investment i.e., Industrial Investment and COSMO FIRST go up and down completely randomly.

Pair Corralation between Industrial Investment and COSMO FIRST

Assuming the 90 days trading horizon Industrial Investment Trust is expected to generate 1.17 times more return on investment than COSMO FIRST. However, Industrial Investment is 1.17 times more volatile than COSMO FIRST LIMITED. It trades about -0.01 of its potential returns per unit of risk. COSMO FIRST LIMITED is currently generating about -0.26 per unit of risk. If you would invest  17,933  in Industrial Investment Trust on September 3, 2025 and sell it today you would lose (557.00) from holding Industrial Investment Trust or give up 3.11% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Industrial Investment Trust  vs.  COSMO FIRST LIMITED

 Performance 
       Timeline  
Industrial Investment 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Industrial Investment Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Industrial Investment is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
COSMO FIRST LIMITED 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days COSMO FIRST LIMITED has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Industrial Investment and COSMO FIRST Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Industrial Investment and COSMO FIRST

The main advantage of trading using opposite Industrial Investment and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Investment position performs unexpectedly, COSMO FIRST 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 COSMO FIRST will offset losses from the drop in COSMO FIRST's long position.
The idea behind Industrial Investment Trust and COSMO FIRST LIMITED 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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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 Global Correlations module to find global opportunities by holding instruments from different markets.

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