Coskewness
Categories: Metrics
Coskewness looks at how risky a stock is in relation to the entire market. It can also look at how two stocks perform in relation to each other. So if they’re positively coskewed, they will go up at the same time and usually outperform the market as a whole.
It’s important to diversify an investment portfolio, and some knowledge in this arena helps. All in all, positive coskewness works out a lot better, because the stocks will go up together in comparison to the market...rather than go down together.