Correlation Between Wealthsimple Shariah and COSCO SHIPPING

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

Diversification Opportunities for Wealthsimple Shariah and COSCO SHIPPING

-0.18
  Correlation Coefficient

Good diversification

The 3 months correlation between Wealthsimple and COSCO is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Wealthsimple Shariah World and COSCO SHIPPING Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Holdings and Wealthsimple Shariah 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 Wealthsimple Shariah World are associated (or correlated) with COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Holdings has no effect on the direction of Wealthsimple Shariah i.e., Wealthsimple Shariah and COSCO SHIPPING go up and down completely randomly.

Pair Corralation between Wealthsimple Shariah and COSCO SHIPPING

Assuming the 90 days trading horizon Wealthsimple Shariah World is expected to under-perform the COSCO SHIPPING. But the etf apears to be less risky and, when comparing its historical volatility, Wealthsimple Shariah World is 3.58 times less risky than COSCO SHIPPING. The etf trades about -0.01 of its potential returns per unit of risk. The COSCO SHIPPING Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  883.00  in COSCO SHIPPING Holdings on August 22, 2025 and sell it today you would lose (9.00) from holding COSCO SHIPPING Holdings or give up 1.02% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Wealthsimple Shariah World  vs.  COSCO SHIPPING Holdings

 Performance 
       Timeline  
Wealthsimple Shariah 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Wealthsimple Shariah World has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Wealthsimple Shariah is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
COSCO SHIPPING Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days COSCO SHIPPING Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, COSCO SHIPPING is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Wealthsimple Shariah and COSCO SHIPPING Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Wealthsimple Shariah and COSCO SHIPPING

The main advantage of trading using opposite Wealthsimple Shariah and COSCO SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wealthsimple Shariah position performs unexpectedly, COSCO SHIPPING 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 COSCO SHIPPING will offset losses from the drop in COSCO SHIPPING's long position.
The idea behind Wealthsimple Shariah World and COSCO SHIPPING Holdings 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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